-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both. Yet, it gets harder and harder to substitute more movies for an instructor the more movies are already used. Which graph in the above figure best represents the isoquants for lectures in microeconomics when units of capital per day is on the vertical axis and units of labor per day is on the horizontal axis?
A)Graph A
B)Graph B
C)Graph C
D)Graph D

Question

-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both. Yet, it gets harder and harder to substitute more movies for an instructor the more movies are already used. Which graph in the above figure best represents the isoquants for lectures in microeconomics when units of capital per day is on the vertical axis and units of labor per day is on the horizontal axis?
A)Graph A 
B)Graph B 
C)Graph C 
D)Graph D

Quizplus · Accepted Answer

Graph B best represents the described situation because it shows isoquants with diminishing marginal rates of technical substitution. This means as more movies (capital) are used in place of instructors (labor), it becomes increasingly difficult to substitute movies for an instructor, which is reflected in the convex shape of the isoquants towards the origin.

-Lectures in Microeconomics Can Be Delivered Either by an Instructor