In order for isoquants to have a diminishing marginal rate of substitution,they must be:
A) L-shaped.
B) straight lines.
C) vertical.
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

Isoquants having a diminishing marginal rate of substitution implies that as one moves down along the isoquant, the amount of one input required to replace a unit of another input increases. This characteristic is not described by L-shaped, straight lines, or vertical isoquants, which represent perfect substitutes, constant returns to scale, and perfect complements, respectively.

In Order for Isoquants to Have a Diminishing Marginal Rate