Question

a) Properties of iso-products curves are the same as those of indifference curves.
b) Iso-product curves slope upwards from left to right.

• A. Both (a) and (b) are true
• B. (a) is true, but (b) is false
• C. (a) is false, but (b) is true
• D. Both (a) and (b) are false

Answer 1

The correct option is B (a) is true, but (b) is false

Iso-product curves exhibit the same properties as the indifference curves. They show how producers aim to maximize their utility with the budget constraint and operate on the most optimal point on their curves.

It is false that the isoquant slopes upwards as like the indifference curve, it is susceptible to diminishing returns.