What can you conclude about an isoquant that is concave to the origin?
A)The level of output shown on the isoquant increases along the curve.
B)The isoquant represents production in the short run as one input is kept fixed.
C)The marginal rate of technical substitution increases along the curve.
D)The slope of the isoquant is infinite.

Question

Quizplus · Accepted Answer

The concavity of an isoquant indicates diminishing marginal rate of technical substitution, which means that as you move down the isoquant, it becomes harder to substitute one input for another. Therefore, the marginal rate of technical substitution increases along the curve.

What Can You Conclude About an Isoquant That Is Concave