Product innovation is shown on an isoquant map by a shift in all isoquants toward the origin.

Question

Quizplus · Accepted Answer

Product innovation typically results in a more efficient production process, allowing the same level of output to be produced with fewer inputs. This would be represented on an isoquant map by a shift of the isoquants toward the origin, but it is more accurately described as process innovation, not product innovation. Product innovation refers to the development of new or significantly improved goods or services and doesn't directly relate to the shifts of isoquants on a map.

Product Innovation Is Shown on an Isoquant Map by a Shift