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Give the meaning of isoquant. |
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Answer» Isoquant is the set 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. The isoquants are negatively sloped. This is because, when the marginal products are positive, with greater amount of one input, the same level of output can be produced by using lesser amount of the other. So, isoquants are negatively sloped. |
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