Asked by Cleo E. Rodriguez on Jun 27, 2024
Verified
Use the following two statements to answer this question: I. Isoquants cannot cross one another.
II) An isoquant that is twice the distance from the origin represents twice the level of output.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.
Isoquants
Curves that represent combinations of inputs that yield the same output, used in the analysis of production technology.
Output Level
The total product units produced within a given time frame in a production process or economic system.
Origin
The point or place where something begins, arises, or is derived.
- Examine the circumstances in which isoquants may or may not intersect and what that means for the efficiency of production.
Verified Answer
AA
Ahmad Abu-SalamehJun 28, 2024
Final Answer :
B
Explanation :
Statement I is true because isoquants represent the various combinations of inputs that produce the same level of output, and if they crossed, it would mean that one input could produce two different levels of output, which is impossible. Statement II is false because the distance of an isoquant from the origin only represents the level of output relative to other isoquants; it doesn't necessarily mean that a point twice as far away from the origin produces twice the level of output.
Learning Objectives
- Examine the circumstances in which isoquants may or may not intersect and what that means for the efficiency of production.