Isoquants are usually drawn convex when viewed from the origin,reflecting the standard assumption
A)that both factors are subject to the law of diminishing returns.
B)that the variable factor is subject to the law of diminishing returns.
C)the positive marginal productivity of all factors.
D)negative marginal productivity of all factors.
E)that both factors are subject to increasing returns.

Question

Quizplus · Accepted Answer

Isoquants are usually drawn convex when viewed from the origin because of the assumption that both factors are subject to the law of diminishing returns. This means that as more and more units of a factor are added while keeping the other factor constant, the additional output increases at a decreasing rate. This leads to the convex shape of the isoquant, where the slope becomes flatter as we move down along the isoquant.

Isoquants Are Usually Drawn Convex When Viewed from the Origin,reflecting