Podcast
Questions and Answers
What does an isoquant map describe?
What does an isoquant map describe?
- A production function (correct)
- A demand function
- A cost function
- A supply function
What do negatively sloped isoquants show?
What do negatively sloped isoquants show?
- The rigidity of output levels
- The uncertainty of production
- The flexibility of production decisions (correct)
- The inflexibility of production decisions
What happens to output when moving from one isoquant to another?
What happens to output when moving from one isoquant to another?
- It increases (correct)
- It becomes zero
- It remains constant
- It decreases
What shape are the isoquants in a fixed-proportions production function?
What shape are the isoquants in a fixed-proportions production function?
What is a characteristic of a production function with L-shaped isoquants?
What is a characteristic of a production function with L-shaped isoquants?
What is the output level at point A and D?
What is the output level at point A and D?
What is the implication of having L-shaped isoquants in a production function?
What is the implication of having L-shaped isoquants in a production function?
What type of production function is associated with L-shaped isoquants?
What type of production function is associated with L-shaped isoquants?
What is the output level at point B?
What is the output level at point B?
What is the implication of having a fixed-proportions production function on the use of labor and capital?
What is the implication of having a fixed-proportions production function on the use of labor and capital?
What is the output level at points C and E?
What is the output level at points C and E?
What is the primary characteristic of the MRTS at all points on an isoquant?
What is the primary characteristic of the MRTS at all points on an isoquant?
What can be inferred about the production process if an isoquant represents a particular output level?
What can be inferred about the production process if an isoquant represents a particular output level?
What does a point on an isoquant represent?
What does a point on an isoquant represent?
What is the significance of points A, B, and C on the isoquant?
What is the significance of points A, B, and C on the isoquant?
What is the implication of a firm being at point A on the isoquant?
What is the implication of a firm being at point A on the isoquant?
