An isoquant shape is derived from:

Question

Quizplus · Accepted Answer

An isoquant is a curve that shows all the possible combinations of two inputs that can produce a certain level of output. The shape of the isoquant is derived from the Law of Diminishing Marginal Returns, which states that as more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease. This leads to a convex shape for the isoquant, as the slope becomes flatter as we move down and to the right. Scarcity, profit-maximization, and decisions on which inputs to buy may all play a role in determining the shape and location of the isoquant, but they are not the underlying factor that determines its shape.

An Isoquant Shape Is Derived From