Production indifference curves bow inward toward the graph's origin because of
A)the law of diminishing returns to a single input.
B)the law of diminishing marginal returns to scale.
C)constant returns to scale.
D)minimizing costs in the short run.

Question

Quizplus · Accepted Answer

Production indifference curves bow inward toward the graph's origin because of the law of diminishing returns to a single input. As we add more and more of one input, keeping other inputs constant, the marginal product of that input starts to decrease. This causes the shape of the production indifference curve to be convex to the origin.

Production Indifference Curves Bow Inward Toward the Graph's Origin Because