Isoquants reflect the fact that in the long run:
A)inputs can be substituted for each other.
B)a fixed set of inputs can produce different levels of output.
C)inputs used in production are complementary in nature.
D)different levels of input can be used to satisfy a budget constraint.

Question

Quizplus · Accepted Answer

Isoquants represent different combinations of inputs that will produce the same level of output. In the long run, firms have more flexibility to adjust their inputs and can substitute one input for another to achieve the same level of output. This means that isoquants have a downward slope and show that inputs are substitutable in the long run. Therefore, the best choice is A - inputs can be substituted for each other.

Isoquants Reflect the Fact That in the Long Run