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Author Question: If inputs into production cannot be substituted for each other but have to be employed in fixed ... (Read 110 times)

genevieve1028

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If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight, downward-sloping lines.
 
  Indicate whether the statement is true or false

Question 2

Unlike indifference curves, isoquants can intersect.
 
  Indicate whether the statement is true or false



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gcook

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Answer to Question 1

False. Isoquants are straight lines when inputs are perfect substitutes. When input relations are fixed they are right angles.

Answer to Question 2

False. By the same logic as with indifference curves, the intersection implies the same level of output. Since output increases as one moves toward the northeast on the isoquant map, moving from the intersection one isoquant shows higher output and the other shows lower. This is contradictory.




genevieve1028

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it


31809pancho

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Reply 3 on: Yesterday
Excellent

 

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