Figure 6.3.1
-Refer to Figure 6.3.1 above. The ability to produce output in this isoquant map shows:
A) increasing marginal returns.
B) diminishing marginal returns.
C) constant returns to both labor and capital.
D) negative returns to both labor and capital.

Question

Figure 6.3.1
-Refer to Figure 6.3.1 above. The ability to produce output in this isoquant map shows:
A) increasing marginal returns. 
B) diminishing marginal returns. 
C) constant returns to both labor and capital. 
D) negative returns to both labor and capital.

Quizplus · Accepted Answer

Isoquant maps typically illustrate diminishing marginal returns, meaning as more units of labor or capital are added, the additional output produced from each new unit decreases. This is a fundamental concept in economics, reflecting the reality that, after a certain point, adding more of one input (while keeping others constant) yields progressively smaller increases in output.

Figure 6.3.1 -Refer to Figure 6.3.1 Above. the Ability to Produce Output