The Point of Tangency Between an Isoquant and the Isocost

Multiple Choice

The point of tangency between an isoquant and the isocost line indicates:

A) that in the long run fixed costs are equal to variable costs.
B) the maximum cost incurred for producing one unit of output.
C) that in the long run marginal costs tend to exceed fixed costs.
D) the minimum cost necessary to produce a particular level of output.