An isoquant represents levels of capital and labor that
A) have constant marginal productivity.
B) yield the same level of output.
C) incur the same total cost.
D) All of the above.

Question

Quizplus · Accepted Answer

An isoquant is a curve or a graph that shows the different combinations of labor and capital that produce the same level of output. Therefore, choice B is the correct answer. Choice A is incorrect because the isoquant does not represent marginal productivity, but rather the level of output. Choice C is also incorrect because the total cost may vary depending on the prices of labor and capital used in the production process.

An Isoquant Represents Levels of Capital and Labor That