Isoquants do not intersect except when a firm doubles the amounts of resources employed.

Question

Quizplus · Accepted Answer

Isoquants can intersect when the production function exhibits decreasing marginal rate of technical substitution. This means that as more of one resource is used, increasingly larger amounts of the other resource are needed to maintain the same level of output. As a result, isoquants can cross. However, this is not a common case and in general, isoquants do not intersect.

Isoquants Do Not Intersect Except When a Firm Doubles the Amounts