Set of all possible combinations of the two inputs that yield the same maximum possible level of output is known as _____.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Isoquant
An Isoquant represents the set of all possible combinations of two inputs (such as labour and capital) that produce the same level of output. It is similar in concept to an indifference curve in consumer theory, but instead of showing equal satisfaction, it shows equal output levels for different input combinations used in production.