Which of the following statements violates the basic assumptions of isoquants?
A) Isoquants cannot cross.
B) Isoquants closer to the origin correspond to lower output levels.
C) Diminishing marginal products imply that isoquants are concave to the origin.
D) Isoquants show all combinations of two inputs that can produce a particular quantity of output.

Question

Quizplus · Accepted Answer

Isoquants are typically convex to the origin, not concave, because of the assumption of diminishing marginal rates of technical substitution. This means as you substitute one input for another, keeping output constant, the amount of the substituted input required increases.

Which of the Following Statements Violates the Basic Assumptions of Isoquants