Which of the following statements about isoquants is NOT correct?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → All the input combinations on one isoquant give different levels of output.
An isoquant joins input combinations that give the same maximum output. That is why each isoquant is labelled with one level of output.
Option (1) Isoquants are negatively sloped when the marginal products of both inputs are positive. — True. With positive marginal products, more of one input must go with less of the other to keep output the same.
Option (2) To produce the same output with more labour, less capital is needed. — True. This is the reason the isoquant slopes downward.
Option (3) With capital fixed, more labour takes the firm to a higher isoquant. — True. Output rises, so the firm reaches an isoquant with a higher output.
Option (4) All the input combinations on one isoquant give different levels of output. — False. All combinations on one isoquant give the same level of output.
NCERT (2026-27): “Isoquant In Chapter 2, we have learnt about indifference curves. Here, we introduce a similar concept known as isoquant. It is just an alternative way of representing the production function. Consider a production function with two inputs labour and capital. An isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output. Each isoquant represents a particular level of output and is labelled with that amount of output. …” “Isoquant … If we fix capital at K1 and increase labour to L3, output increases and we reach a higher isoquant, q = q2. When marginal products are positive, with greater amount of one input, the same level of output can be produced only using lesser amount of the other. Therefore, isoquants are negatively sloped.”
|
