Which of the following statements about an isoquant is NOT correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → It shows bundles of goods that give a consumer equal satisfaction.
An isoquant is a producer’s curve: input combinations that give the same output. Bundles of goods giving equal satisfaction lie on a consumer’s indifference curve.
Option (1) It is an alternative way of representing the production function. — True. It is another way of showing the production function.
Option (2) It shows bundles of goods that give a consumer equal satisfaction. — False. That describes an indifference curve. An isoquant shows combinations of inputs that give the same output.
Option (3) Each isoquant represents a particular level of output. — True. Each isoquant is labelled with one output level.
Option (4) A higher isoquant represents a higher level of output. — True. More of an input with the other fixed raises output, which puts the firm on a higher isoquant.
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.” |