Asked by
Relisa Morina
on Oct 25, 2024Verified
Which of the following is NOT related to the slope of isoquants?
A) The fact that inputs have positive marginal product
B) The fact that inputs have diminishing marginal product
C) The fact that input prices are positive
D) The fact that more of either input increases output
E) The fact that there are diminishing returns to inputs
Marginal Product
The increase in output resulting from a one-unit increase in the quantity of a particular input, holding other inputs constant.
Isoquants
Isoquants are curves that represent combinations of various inputs that produce the same level of output, used in production theory to analyze input choices.
Input Prices
The cost of resources used in the production of goods and services.
- Understand the concept of isoquants and the marginal rate of technical substitution (MRTS).
- Make connections between the slope of isoquants, marginal products of inputs, and the law of diminishing marginal productivity.
Verified Answer
LR
Learning Objectives
- Understand the concept of isoquants and the marginal rate of technical substitution (MRTS).
- Make connections between the slope of isoquants, marginal products of inputs, and the law of diminishing marginal productivity.