Question

The region inside of the two ridge lines in the isoquant diagram is: Answers: a) where...

The region inside of the two ridge lines in the isoquant diagram is:

Answers:

a) where the marginal product of one of the two inputs is negative and that of the other positive.

b) the non-economic region of production.

c) where the marginal products of both of the two inputs are negative.

d) where the marginal products of both of the two inputs are positive.

Homework Answers

Answer #1

Option A

  • The region inside of the two ridge lines in the isoquantdiagram is where the marginal product of the two inputs is negative and that of the other positive.
  • Isoquant is a curve along which the output will be same.
  • When a firm produces a particular amount of a commodity by applying different mixture of labour and capital, when this details is drawn on a graph , we acquire an isoquant.
  • The marginal product of a factor may be negative if the quantity used is too large. The area of rational operation drawn by showing two lines from the beginning surround those parts of isoquant has a positive marginal product and those lines are called ridge lines.
  • Negative marginal product are visible in that part of the isoquant which has a positive slope.
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