The combinations of inputs that produce a given level of output are depicted by:
A) indifference curves.
B) budget lines.
C) isocost curves.
D) isoquants.

Question

Quizplus · Accepted Answer

Isoquants depict the different combinations of inputs that can produce a given level of output. Indifference curves represent the different combinations of goods that provide the same level of utility to the consumer. Budget lines represent the various combinations of two goods that a consumer can purchase with a given income and prices. Isocost curves depict the different combinations of inputs that cost the same amount. Therefore, only choice D is the correct answer.

The Combinations of Inputs That Produce a Given Level of Output