The Fact That Isoquants Are Downward Sloping Indicates

question 36

Multiple Choice

The fact that isoquants are downward sloping indicates

• A)the diminishing marginal productivity of a variable factor.
• B)the diminishing marginal productivity of a fixed factor.
• C)that each factor input has a negative marginal productivity.
• D)that a reduction in the use of one factor requires an increase in the use of the other factor in order to keep output constant.
• E)a change in relative factor prices,with output held constant.

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Definitions:

Non-Controlling Interest

This is an equity interest in a subsidiary not owned by the parent company, which has a claim on the subsidiary's earning and assets.

Business Combination

A transaction or event in which a company acquires control over one or more businesses, often through acquisition or merger.

Share Ownership

The possession and holding of stock in a company by individuals or entities, entitling them to ownership rights and potential profits.

Depreciable Non-current Asset

A long-term asset subject to depreciation, reflecting the asset's consumption, wear and tear, or obsolescence over its useful life.