Which of the following is true-
a) An isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.
b) Isoquant works on Law of Marginal Rate of Substitution.
a) An isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.
b) Isoquant works on Law of Marginal Rate of Substitution.
Answer & explanation
Correct answer: option 2
Isoquant works on Law of Marginal Rate of Technical Substitution.