Compare the equilibria. Output maximization entails finding the highest isoquant that can be reached from a given isocost line. Output Q 2 is not attainable since it exceeds the cost constraint. Options A and B are inferior since higher levels of output can be achieved at the same cost. The optimal input combination is at E where the isoquant is tangent to the isocost.
Cost minimization entails finding the lowest isocost that can be used to reach a given isoquant.
Cost C 0 is not attainable since it does not produce the given output. Options A' and B' are inferior since lower levels of cost can be achieved at the same output. The optimal input combination is at E where the isoquant is tangent to the isocost.