If technological change is factor neutral,then the firm's isoquants
A) Shift out away from the origin
B) Shift in toward the origin
C) Do not change in appearance
D) Become flatter

Question

Quizplus · Accepted Answer

If technological change is factor neutral, then it means that the technology is not biased towards any specific factor of production. Therefore, the shape and position of the isoquants remain the same. Hence, they do not change in appearance.

If Technological Change Is Factor Neutral,then the Firm's Isoquants