A curve that shows all the combinations of two inputs, such as labour 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 shows all the combinations of two inputs that will produce the same level of output. It is an important tool used in production analysis to determine the optimal input combination that will minimize costs while achieving a desired level of output. The other options (B, C and D) are not correct as they refer to different concepts.

A Curve That Shows All the Combinations of Two Inputs