Movement from one point to another along an isoquant implies a change in
A)output levels,holding factor combinations constant.
B)factor combinations,holding output constant.
C)product prices.
D)the level of output,independent of what happens to factor combinations.
E)money income.

Question

Quizplus · Accepted Answer

Movement along an isoquant indicates that the level of output is constant. Therefore, option A and D are incorrect. Similarly, the product prices and money income have no relation to movement along an isoquant, making options C and E incorrect. However, movement from one point to another along an isoquant implies a change in factor combinations while keeping the output constant. Therefore, option B is the correct answer.

Movement from One Point to Another Along an Isoquant Implies