JAMB - Economics (2012 - No. 16)
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
Uitleg
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.