The fact that isoquants are downward sloping indicates
A)the diminishing marginal productivity of a variable factor.
B)the diminishing marginal productivity of a fixed factor.
C)that each factor input has a negative marginal productivity.
D)a change in relative factor prices,with output held constant.
E)that a reduction in the use of one factor requires an increase in the use of the other factor in order to keep output constant.

Question

Quizplus · Accepted Answer

Isoquants are downward sloping because they represent combinations of inputs that yield the same level of output. A reduction in one input requires an increase in the other to maintain the same output level, reflecting the trade-off between inputs.

The Fact That Isoquants Are Downward Sloping Indicates