An isoquant lying above to the right of another represents

  • A a higher output level
  • B constant returns to scale
  • C over-capacity utilization
  • D a lower output level

The correct answer is A. a higher output level

An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.

When one isoquant lies above and to the right of another isoquant, it indicates a higher output level.

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