Two isoquants, which represent different output levels but are derived from the same production function, cannot cross because:
A) isoquants represent different utility levels.
B) this would violate a technical efficiency condition.
C) isoquants are downward sloping.
D) additional inputs will not be used by profit maximizing firms if those inputs decrease output.
E) Both B and D are true.

Question

Quizplus · Accepted Answer

Isoquants represent different levels of output for a given production function, and they cannot cross because it would imply that the same combination of inputs could produce two different levels of output, violating the principle of technical efficiency. Additionally, profit-maximizing firms will not use more inputs if those inputs decrease output, further supporting the concept that isoquants cannot cross.

Two Isoquants, Which Represent Different Output Levels but Are Derived