Why are isoquants negatively sloped?
A)Along a single isoquant, the firm can substitute the use of one input for another while holding the total level of output constant.
B)Due to the effects of diseconomies of scale.
C)Because the farther the isoquant is from the origin, the higher the level of output.
D)Because price and quantity demanded are inversely related.

Question

Quizplus · Accepted Answer

Isoquants are negatively sloped because they represent combinations of inputs that generate the same level of output. Along a single isoquant, a firm can substitute the use of one input for another while holding the total level of output constant. This means that as the firm substitutes one input for another, the quantity of the input that is being substituted increases while the quantity of the other input decreases. Consequently, the slope of the isoquant is negative.

Why Are Isoquants Negatively Sloped