A firm's isoquant shows
A)the amount of labor needed to produce a given level of output with capital held constant.
B)the amount of capital needed to produce a given level of output with labor held constant.
C)the various combinations of capital and labor that will produce a given amount of output.
D)None of the above.

Question

Quizplus · Accepted Answer

An isoquant is a curve that represents all possible combinations of inputs that produce a given level of output. Therefore, option C is the correct answer as it states that the isoquant shows the various combinations of capital and labor that will produce a given amount of output. Option A and B are incorrect as they only consider one input variable and hold the other input constant, whereas an isoquant considers both inputs simultaneously.

A Firm's Isoquant Shows