12 Questions
What do ISO quants represent?
Different production possibilities
ISO quants are equal to?
Product Lines
What are ISO quants also known as?
Production indifference curves
At the equilibrium point, an ISO quant is ________ to an ISO cost line:
Tangent
What does an ISO quant show?
All the alternative combinations of two inputs that yield the same total product.
In economics, what do ISO quants represent?
Different resource allocations
What does a change in scale mean in production?
All factors of production are increased or decreased
What is it called when an increase in all inputs leads to less than a proportional increase in output?
Decreasing returns to scale
What stage is it when output decreases by 20% due to an increase in inputs by 20%?
None of the above
What are Constant Returns to Scale also known as?
Linear Homogenous
In Hariharan's case where his production increased by only 80% instead of 100% after increasing all factors by 100%, which law of returns to scale is operating?
Decreasing returns to scale
When output increases in a smaller proportion with an increase in all inputs, what kind of returns to scale set in?
Constant returns to scale
Test your knowledge on factors of production and returns to scale with this quiz. Questions cover topics such as changes in scale affecting factors of production and the concept of decreasing returns to scale.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
