Is the locus of points of tangency between successive isoquants and isocost lines.
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Answer:
The locus of all such points of tangencies between the Isoquant and the parallel Isocost lines is the expansion path for the firm.
Expansion path
The tangency point identifies the element that is linked up with the lowest isocost line. An isoquant appears as a curve on a graph with two axes that measure the quantities of the two variables, capital, and labor, in the system of two variables. The point at which the isoquant touches but does not cross the lowest isocost line is attributed to the low-cost position. Production efficiency occurs when exchange rates and marginal product are proportional, with the exactly equal marginal product per national currency, according to the tangency part. An isoquant is a set of all points that represents all technically efficient ways of combining production factors to achieve a constant volume of production. It is also referred to as the equal product curve.