The set of all possible combinations of the two inputs that yield the same maximum possible level of output is known as............ |
Isocost. Indifference curve. Isoquant. Budget line. |
Isoquant. |
The correct answer is Option (3) → Isoquant. An isoquant is a curve that shows all possible combinations of two inputs (such as labor and capital) that produce the same maximum level of output. It is similar in concept to an indifference curve in consumer theory but applied to production. |