An isoquant represents:
A)all combinations of inputs that produce a given level of output at the same cost.
B)all combinations of inputs that produce a given level of output.
C)all combinations of output that require the same levels of inputs.
D)all combinations of inputs that cost the same amount.

Question

Quizplus · Accepted Answer

An isoquant represents all combinations of inputs that can produce a given level of output. The term "iso" means same or equal, and the term "quant" means quantity or amount. Therefore, an isoquant represents the same quantity of output. The isoquant does not necessarily represent the same cost, as the cost of the inputs can differ for each combination of inputs that can produce the same level of output. An isoquant represents all combinations of inputs that produce a given level of output. Isoquants do not represent cost or the level of output required for a given combination of inputs, so options A, C, and D are incorrect.

An Isoquant Represents