If the firm wishes to produce fewer than 25 chairs it must choose a production method which lies on a lower isoquant such as the one labeled 10 to the right. By lower we mean a lower level of output. So the isoquant labeled 50 would be the highest isoquant on the graph to the right.

    Suppose the firm has already made a decision about the amount of output it wishes to produce, so it knows which isoquant it needs to be on. We're interested in how the firm decides which production method on that isoquant it will use.

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