Isoquants are usually drawn convex when viewed from the origin,reflecting the standard assumption
A)that both factors are subject to the law of diminishing returns.
B)negative marginal productivity of all factors.
C)the positive marginal productivity of all factors.
D)that the variable factor is subject to the law of diminishing returns.
E)that both factors are subject to increasing returns.

Question

Quizplus · Accepted Answer

The convexity of isoquants when viewed from the origin reflects the assumption that both factors are subject to the law of diminishing returns. This means that as more of one factor is used, it becomes less effective in producing output unless more of the other factor is used as well. This leads to more and more of the second factor being required to achieve the same level of output, resulting in the convex shape of the isoquant.

Isoquants Are Usually Drawn Convex When Viewed from the Origin,reflecting