Overview

isocost curve


Show Summary Details

Quick Reference

A curve showing the combinations of factor inputs that have constant market cost. If firms are acting as price-takers in factor markets, the isocost curve is a straight line, whose slope represents the relative prices of different factors' services. A profit-maximizing firm will minimize the cost of factors required to produce a given output, corresponding to the isoquant being tangential to the lowest isocost curve.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.