Answer:
The above statement is TRUE
Step-by-step explanation:
Isocost Line shows input/factor combinations (here - labor & capital) which are of same Total Cost / budget to the producer , given factors price .
It is analogous to Consumer's Budget Line Constraint (representing product combinations satisfying their income budget) .
It is an important component of Producer's Equilibrium : Producer is at equilibrium where Isocost is tangent to Isoquant (representing input/ factor combinations yielding same level of production quantity - analogous to consumer's indifference curve showing production combinations offering same consumer satisfaction) .
Tangency of Iscost line to Isoquant curve gives Producer Equilibrium .