You are hired as a consultant by Orange to review its costs and input choices. Let 1x1 represent purchased inputs and 2x2represent inputs produced in-house, and let 1p1 and 2p2 be the cost of each to Orange. Orange provides the following information: 1. When the price of purchased inputs was $10 and the price of in-house inputs was $10, Orange purchased 4 inputs and used 8 in-house inputs for every smartphone produced. 2. When the price of purchased inputs was $40 and the price of in-house inputs was $10, Orange purchased 1 input and used 12 in-house inputs for every smartphone produced. 3. When the price of purchased inputs was $10 and the price of in-house inputs was $20, Orange purchased 6 inputs and used 5 in-house inputs for every smartphone produced. On the graph below, use the point tool to plot the three input combinations given and label them 1, 2, and 3, respectively. Then use the line tool to draw isocost lines through each point based on the prices associated with each choice of inputs.

Are the managers at Orange minimizing costs at each input price combination? Choose one:

A. They appear to be minimizing costs at points 1 and 2, but not at point 3.

B. They appear to be minimizing costs only at point 3.

C. They do not appear to be minimizing costs at any point.

D. They appear to be minimizing costs at points 2 and 3, but not at point 1.

E. They appear to be minimizing costs at points 1 and 3, but not at point 2.

F. They appear to be minimizing costs at points 1, 2, and 3.

G. They appear to be minimizing costs only at point 2.

H. They appear to be minimizing costs only at point 1.