Final answer:
Isoquants are curves representing combinations of inputs that produce the same output level. To draw isoquants for 100 and 200 units, input combinations are plotted and smoothly connected, with two points labeled on each isoquant. The 200-unit isoquant lies above the 100-unit isoquant on a graph.
Step-by-step explanation:
The question involves creating isoquants, which are curves that represent all the combinations of inputs that yield the same level of output, in the context of production theory within economics. To draw isoquants for 100 units and 200 units, one would typically plot input quantities on the axes, say labor (L) on the x-axis and capital (K) on the y-axis. An isoquant for 100 units would show the mix of labor and capital that can produce exactly 100 units of output.
To illustrate this, we may take hypothetical input combinations such as (L=10, K=20) and (L=20, K=10) for the 100-unit isoquant, and (L=20, K=40) and (L=40, K=20) for the 200-unit isoquant. These points are then connected with a smooth curve, reflecting the trade-off between inputs. Each isoquant slopes downward, indicating that as one input increases, the other must decrease to maintain the same level of output. The isoquant for 200 units would sit higher than that for 100 units, reflecting a greater level of output. It is important to remember that isoquants cannot intersect, as that would violate the assumption of consistent rates of substitution.
When sketching the isoquants on a graph, one begins by plotting the given input points for each level of output. Next, a straight line is drawn through each pair of points, and finally, the points are connected smoothly to form the complete isoquant curve. Two points on each isoquant should be properly labeled, such as A and B on the 100-unit isoquant, and C and D on the 200-unit isoquant, to help visualize the concept of input substitution at different levels of production.