The isoquants are normally drawn with a convex shape because inputs are:
A) not perfectly substitutable.
B) perfectly substitutable.
C) perfect complements.
D) normal goods.

Question

Quizplus · Accepted Answer

Isoquants are normally drawn with a convex shape because inputs are not perfectly substitutable. This means that the input combination required to produce the same level of output cannot be achieved by using a constant ratio of inputs. Therefore, as we increase the quantity of one input, we need to increase the quantity of the other input as well. This results in a curved shape of isoquants. The shape of isoquants is not affected by goods being normal or inferior or whether inputs are perfect complements.

The Isoquants Are Normally Drawn with a Convex Shape Because