An isoquant shows the various combinations of labor and capital that
A) the firm will choose to employ in the long run.
B) yield the same total cost.
C) can produce some fixed level of output.
D) minimize the firm's average cost of production.

Question

Quizplus · Accepted Answer

An isoquant is a curve that shows all the possible combinations of two inputs, such as labor and capital, that can produce a given level of output. Therefore, option C is the correct answer as an isoquant shows the different combinations of labor and capital that can produce some fixed level of output. Options A, B, and D are incorrect as they do not properly describe the function of an isoquant.

An Isoquant Shows the Various Combinations of Labor and Capital