A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called
A)an isoquant.
B)an isocost line
C)a budget line.
D)an optimal input combination curve.

Question

Quizplus · Accepted Answer

An isoquant is a curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output. Therefore, A is the correct answer as it correctly defines the concept. Option B is incorrect as an isocost line shows all the combinations of two inputs that cost the same amount. Option C is incorrect as a budget line shows all the combinations of two goods that can be purchased given a certain budget. Option D is incorrect as optimal input combination curve refers to the combination of inputs that results in the maximum output at the minimum cost.

A Curve That Shows All the Combinations of Two Inputs