What would an upward sloping isoquant imply?

What would an upward sloping isoquant imply?

An upward sloping isoquant would mean that if you increased both inputs output would stay the same. This would occur only if one of the inputs reduced output; sort of like a bad in consumer theory. As a general rule, if the firm has more of all inputs it can produce more output.

Is isoquant upward sloping?

Isoquant curve can never slope upward.

What is isoquant map?

An isoquant map shows a set of iso-product curves. Each isoquant represents a different level of output. A higher isoquant shows a higher level of output and a lower isoquant represents a lower level of output.

What do you mean by ISO quants?

The term “isoquant,” broken down in Latin, means “equal quantity,” with “iso” meaning equal and “quant” meaning quantity. Essentially, the curve represents a consistent amount of output. The isoquant is known, alternatively, as an equal product curve or a production indifference curve.

What does an upward sloping isoquant mean for MP K?

Likewise, vertical isoquant would indicate marginal products of capital (MP K) are zero. Further, an upward sloping isoquant implies that either the marginal products of the two factors are zero or one of the two factors has negative marginal products and the other has positive marginal products.

Why does an isoquant have a downward slope?

So, if we want to maintain a constant level of output when the quantity of labour (or capital) is increased, the quantity of capital (or labour) must decrease. This implies a negatively sloped isoquant. In other words, a downward slope suggests that both the inputs have positive marginal products. ii. An Isoquant is Convex to the Origin:

Which is the best definition of an isoquant map?

Thus, an isoquant is a curve showing all combinations of labor and capital that can be used to produce a given quantity of output. An isoquant map is a set of isoquants that shows the maximum attainable output from any given combination inputs.

What makes an isoquant convex to the point of origin?

Thus, an isoquant will be, in general, convex to the point of origin. A Higher Isoquant Denotes a Higher Level of Output: Another basic characteristic of an isoquant is that greater its distance from the point of origin, higher output level it will represent.