Two Isoquants, Which Represent Different Output Levels but Are Derived

question 43

Multiple Choice

Two isoquants, which represent different output levels but are derived from the same production function, cannot cross because:

• A) isoquants represent different utility levels.
• B) this would violate a technical efficiency condition.
• C) isoquants are downward sloping.
• D) additional inputs will not be used by profit maximizing firms if those inputs decrease output.
• E) Both B and D are true.

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