Consider the graph showing the production function for coffee houses. The graph shows how output per worker increases as the amount of capital each worker has to use increases, other things being equal. The owners of Joe's Java and Cathy's Coffee are each considering adding another espresso machine. Joe's Java is currently operating at point A, where the new machine would move Joe's Java to point B. Cathy's Coffee is operating at point C and the new machine would move them to point D. Which of the choices is not held constant when moving from left to right along the curve? the amount of capital used in relation to the number of workers the level of technology that the capital employs the skill of the workers the amount of natural resources available for the workers to use

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.