Question: Different combinations of inputs that produces a given local of output is
Options:
Production possibility curve
Least cost combination
Iso-quant*
Profit maximization point
An isoquant is a curve that shows all the different combinations of two inputs that can be used to produce a specific level of output. It represents a "contour" of equal production quantity.
📌 Other Options Explained:
-a) Production Possibility Curve (PPC): A PPC shows the maximum attainable output combinations of two goods with limited resources. While it considers different output levels, it doesn't depict various input combinations for a single output level.
-b) Least Cost Combination: This refers to the specific combination of inputs that minimizes the cost of producing a given level of output. It's chosen based on isoquants and factor prices.
-d) Profit Maximization Point: This refers to the output level where the firm earns the maximum profit. It's determined by factors like production costs, selling price, and market demand, not directly related to different input combinations for a single output.