The Fact That Isoquants Are Downward Sloping Indicates

question 72

Multiple Choice

The fact that isoquants are downward sloping indicates

• A) a change in relative factor prices.
• B) the diminishing marginal productivity of a variable factor.
• C) the diminishing marginal productivity of a fixed factor.
• 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) that each factor input has a negative marginal productivity.

Define Nash equilibrium and identify conditions for its existence in various market structures.

Calculate the profit-maximizing output and price for monopolists and firms in oligopolistic competition.

Distinguish between different market equilibriums: Cournot, collusion, and competitive.

Recognize characteristics of oligopolistic markets and how they differ from other market structures.

---

Definitions:

External Incentive

A motivator or reward from the outside environment that encourages specific behaviors or actions.

Reducing Dissonance

Involves minimizing or eliminating cognitive dissonance, which is the discomfort experienced when holding two or more conflicting cognitions (thoughts, beliefs, or attitudes).

Chosen School

A term that may refer to an educational institution selected specifically for attendance, based on various criteria such as academic, religious, or personal preferences. If not used in a specific context, the term might not have a recognized definition.

Ignoring New Information

The act of disregarding or dismissing new evidence or data that contradicts one's existing beliefs or theories.