The curve showing all the combinations of inputs that can be purchased with a given outlay of funds is called a(n)
A)total cost curve.
B)isocost.
C)isoquant.
D)production function.

Question

Quizplus · Accepted Answer

An isocost curve represents all the combinations of two inputs that can be purchased with a given amount of money or outlay. It helps in determining the most cost-effective input combination for a given level of output or production. Total cost curve represents the total cost of production at different levels of output, isoquant shows all the combinations of two inputs that produce a specific level of output, and the production function shows the maximum output that can be produced with different combinations of inputs.

The Curve Showing All the Combinations of Inputs That Can