# isocost line

## isocost line

a line showing combinations of FACTOR INPUTS that can be purchased for the same total money outlay. See ISOQUANT CURVE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Then, the isocost line becomes AB', and the equilibrium point of the firm's maximum profit moves from a to b.
Reading the isocost line confirms that the quality cost of this problem is 1 % of sales (figure 2).
The isocost lines verify that we need extremely low probabilities of failure, way below the FMEA scale.
Rather than looking at a steeper isocost line, for didactical purposes we consider a movement at the isocost curve through point D by looking at tax rate changes that leave the factor price ratio constant.
to be less than it is, making the isocost line as it appears to the
"full" isocost line that reflects all the costs of the
3 is drawn as a downward-sloping curve with a constant slope, called an isocost line. The isocost curve describes how much a given work force (L) and capital (K) will cost, given their market-determined factor prices.
The slope of the isocost line, (-w/r) is the ratio of factor prices: the line will become steeper or flatter as the absolute value of the rate increases or decreases.
In Figure 1, he assumes that the bureaucrat would start at point A (point A in [ILLUSTRATION FOR FIGURE 3 OMITTED], also.) The isocost line is at the efficient price for this median voter and point C is their preferred price and quantity choice.
With institutionally fixed wages for doctors and unit price per beds (c), the initial isocost line is given by [C.sub.0] with slope (=-w/c) in Figure 1.
This causes the isocost line to be represented by AC.

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