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 statements is correct.

Name: 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 statements is correct.
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Question

Quizplus · Accepted Answer

Isoquants with a diminishing marginal rate of substitution are typically convex to the origin, not L-shaped, straight lines, or vertical.

In Order for Isoquants to Have a Diminishing Marginal Rate