1.

Assertion (AS): An Iso Cost Line is a straight line.Reason (R): The market rate of exchange between the two inputs is constant.Codes:

A. Both (AS) and (R) are true and (R) is correct explanation of (As).
B. Both (AS) and (R) are true, but (R) is not correct explanation of (AS).
C. (AS) is true, but (R) is false.
D. (AS) is false, but (R) is true.
Answer» B. Both (AS) and (R) are true, but (R) is not correct explanation of (AS).


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