The set of all possible combinations of the two inputs, labour and capital, that yield the same maximum possible level of output is called....... |
Indifference Curves. Isocost curve. Production Possibility Set. Isoquant. |
Isoquant. |
The correct answer is Option (4) → Isoquant. An isoquant is a curve that shows all possible combinations of two inputs (labour and capital) that produce the same level of output. It is similar to an indifference curve in consumer theory, but applied to production. |