Question

A production isoquant identifies _____. A. the cost of producing a given output B. the maximum output possible, given a fixed budget C. the different combinations of inputs that can be used to produce a fixed rate of output D. the different combinations of goods that can be produced, given fixed amounts of inputs

Answer 1

Answer:

C. the different combinations of inputs that can be used to produce a fixed rate of output

Explanation:

• Given a production function, F(K;L) where K is the capital and L is labour, both of them inputs, an isoquant can be obtained by fixing the value of F(K;L) equal to some constant "m" .
• The level of production "m" can be obtained by combining different levels of inputs.

• Then, the isoquant at level of production "m" will contain the different combinations of K and L that produce m.