Difference between isoquant and isocost curve

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What is the difference between an isoquant and an isocost curve?

a. An isoquant curve shows all combinations of prices and output that maximize profit; an isocost curve shows all combinations of labor and capital that result in excessive costs (or a loss).

b. An isoquant curve shows all combinations of labor and capital that a company can fit into its factories or office space; an isocost curve shows all prices of labor and capital.

c. An isoquant curve shows all quantities of labor that produce a given output; an isocost curve shows all combinations of capital that produce a given output.

d. An isoquant curve shows all combinations of labor and capital that produce the same amount of output; an isocost curve shows all combinations of labor and capital that are affordable given a particular budget.

Reference no: EM133248491

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