The region of upward sloping backward bending isoquants is:
A)Economic region of production
B)Uneconomic region of production
C)Marginal rate of production
D)Marginal rate of technical substitution

Question

Quizplus · Accepted Answer

The region of upward sloping backward bending isoquants is called uneconomic region of production because in this region, as more and more inputs are used, the marginal product of each input starts to fall, resulting in a decrease in total output. This means that using more inputs becomes increasingly expensive and hence uneconomical. An upward sloping backward bending isoquant represents a region of production where increasing the inputs may lead to a decrease in the output. This region is referred to as the uneconomic region of production because it would not make economic sense to produce in this region since the cost of inputs would be greater than the value of output produced.

The Region of Upward Sloping Backward Bending Isoquants Is