Characteristics of Isocost line
- Distance of Isocost line from the origin
- As total outlays (expenditure) increase, the Isocost line moves higher and higher, further away from the origin.
- For example, an Isocost line will be half way between the origin and Rs. 200 outlay line. Both lines will have the same slope.
- Slope of Isocost lines
- Changes in the input prices will change the slope of the Isocost line. The slope of the isocost line, therefore, indicates the ratio of factor prices.