An Isoquant is convex to the origin because of?
اسکوانٹ اصل کی طرف کیوں مُنحنی ہوتا ہے؟
- Law of increasing returns
- Law of diminishing returns
- Diminishing marginal rate of substitution between factors
- None of these
Explanation
- An isoquant shows different combinations of two inputs (like labor and capital) that produce the same output.
- It is convex to the origin due to the diminishing marginal rate of substitution (MRTS) between factors.
- This means as one input increases, more and more of the other input is needed to maintain the same output.
- This reflects realistic production behavior in economics.
Last verified on 22-04-2026
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