Reference: Ref 7-5

Refer to the equilibrium graph. If the isocost line is the one with intercepts of 8 units Capital and 10 units Labor, then the total output that could be produced if firm purchased 3 units of labor and 5.5 units of Capital is ______ the total output that could be produced if the firm purchased 5 units of labor and 4 units of capital.

Question 2 options:

a)

less than

b)

the same as

c)

greater than