Asked by Mirales Jumuad on Jun 27, 2024
Verified
The higher the level of output, the farther ________ the isoquant will lie.
A) up and to the right
B) down and to the right
C) up and to the left
D) down and to the left
Output
The total amount of goods or services produced by a firm or economy over a specific period.
Isoquant
A curve in economic theory that represents all the combinations of inputs which produce the same level of output.
- Determine the impact of varying output levels on the placement of isoquants in a graphical representation.
Verified Answer
MO
michala ONeillJun 28, 2024
Final Answer :
A
Explanation :
Isoquants represent combinations of inputs that yield the same level of output. A higher level of output requires more inputs, so the isoquant for a higher output level lies up and to the right, indicating more of both inputs are needed.
Learning Objectives
- Determine the impact of varying output levels on the placement of isoquants in a graphical representation.