An isoquant:
A) must be linear.
B) cannot have a negative slope.
C) is a curve that shows all the combinations of inputs that yield the same total output.
D) is a curve that shows the maximum total output as a function of the level of labor input.
E) is a curve that shows all possible output levels that can be produced at the same cost.

Question

Quizplus · Accepted Answer

An isoquant is a curve that shows all the combinations of inputs (such as labor and capital) that yield the same total output. It does not have to be linear, it can have a negative slope, and it does not necessarily show the maximum output as a function of labor input. Option E is incorrect because isoquants do not relate to cost, but to output level.

An Isoquant