Asked by Breanna Clayton on May 16, 2024
Verified
A production isoquant is a locus of combinations of inputs that are equally profitable.
Production Isoquant
A production isoquant is a curve that represents all combinations of inputs that yield the same level of output, used in production theory to analyze efficient production.
Inputs
The resources, labor, materials, and capital, that are used in the production process to create goods or services.
Profitable
Describing a situation, venture, or entity that generates income in excess of its expenses, thereby yielding a financial gain.
- Analyze the significance of isoquants and grasp their contribution to production theory.
Verified Answer
AB
Austin BishopMay 19, 2024
Final Answer :
False
Explanation :
A production isoquant is a locus of combinations of inputs that generate the same level of output, not necessarily the same level of profit. Therefore, option B is the correct statement.
Learning Objectives
- Analyze the significance of isoquants and grasp their contribution to production theory.