The equilibrium point of a firm is attained at the point where the isoquant is
- greater than the isocost
- less than the isocost
-
tangent to the isocost
- greater than the output
The correct answer is: C
Explanation
The firm is in equilibrium at the point where the isoquant curve is tangent to the iso-cost line. At this point, the firm is maximising its output level by employing the optimal combination of capital and labour.