Which of the following is not a production assumption for competitive general equilibrium models?
A)Isoquants are smooth.
B)Isoquants are positively sloped.
C)Production involves no externalities.
D)Isoquants are convex.

Question

Quizplus · Accepted Answer

Isoquants, which represent combinations of inputs that yield the same level of output, are negatively sloped, not positively. This is because to maintain the same level of output, an increase in one input must be offset by a decrease in another.

Which of the Following Is Not a Production Assumption for Competitive