Isoquants are convex to the origin due to:
A)the law of diminishing marginal utility.
B)the assumption of the diminishing marginal productivity of each input.
C)the fact that as less capital is used, its marginal productivity falls.
D)the fact that as more labor is used, its marginal productivity rises.

Question

Quizplus · Accepted Answer

Isoquants are convex to the origin because of the assumption of the diminishing marginal productivity of each input. This means that as more units of a particular input are utilized, the additional units add less and less to the total output. Therefore, in order to produce the same level of output, a firm must use a combination of inputs that compensates for the declining marginal productivity of each input. This leads to isoquants that are convex to the origin. The other options, A, C and D, are incorrect or partially incorrect because they do not explain the reason for the convexity of isoquants to the origin.

Isoquants Are Convex to the Origin Due To