What information is displayed by an isoquant?
A)the whole set of technically efficient factor combinations that can produce varying levels of output
B)the whole set of technically efficient factor combinations that can produce a single level of output
C)various levels of output that can be produced with a fixed factor combination
D)the alternative factor combinations that require the same expenditure
E)various levels of output that can be produced with different factor combinations

Question

Quizplus · Accepted Answer

An isoquant displays all the technically efficient factor combinations that can produce a single level of output. It represents a contour line of a production function, with each isoquant representing a different level of output. Therefore, it does not show various levels of output that can be produced with different factor combinations (E) or alternative factor combinations that require the same expenditure (D). It also does not show the whole set of technically efficient factor combinations that can produce varying levels of output (A), but only those that can produce a specific level of output represented by the isoquant.

What Information Is Displayed by an Isoquant