Question

Which of these is/are characteristic(s) of a isoquant?

• A. Convex to origin
• B. Never intersect each other
• C. Negative sloped
• D. All of the above

Answer 1

Answer: (D)

All of the above

Characteristics of Isoquants

1. The slope of an isoquant is convex in nature and this follows directly from the the assumption of diminishing marginal rate of substitution. This implies that lesser is amount of the factor is used by the firm, the lesser willing it is to give up a unit of that factor to obtain an additional unit of the other factor. The opportunity cost of each extra unit is increasing.
   
2. Isoquants can never cross each other as this will violate the fundamental rule that a higher isoquant yield higher utility. isoquants that cross each other imply that isoquants of different levels are capable of providing the same satisfaction at a point. This however is not possible.
   
3. The isoquant has a negative slope in order to imply that resources are scarce and in order to employ more of a particular resource the employer must employ less of the other factor.