The fact that isoquants are downward sloping indicates
A) a change in relative factor prices.
B) the diminishing marginal productivity of a variable factor.
C) the diminishing marginal productivity of a fixed factor.
D) that a reduction in the use of one factor requires an increase in the use of the other factor in order to keep output constant.
E) that each factor input has a negative marginal productivity.

Question

Quizplus · Accepted Answer

Isoquants are downward sloping because they represent combinations of inputs that produce the same level of output. If one input is reduced, the other must be increased to maintain the same output level, reflecting the trade-off between inputs.

The Fact That Isoquants Are Downward Sloping Indicates