When isoquants are convex to the origin,:
A)the marginal rate of technical substitution is inverted.
B)the marginal rate of technical substitution is decreasing.
C)the marginal rate of technical substitution is constant.
D)the marginal rate of technical substitution is increasing.

Question

Quizplus · Accepted Answer

When isoquants are convex to the origin, it indicates that as one moves down along the isoquant, more and more of one input is needed to replace a unit of another input, leading to a decreasing marginal rate of technical substitution (MRTS). This reflects diminishing returns to factor substitution.

When Isoquants Are Convex to the Origin