One Way to Explain the Convexity of Isoquants Is to Say

question 53

Multiple Choice

One way to explain the convexity of isoquants is to say that

• A) as labor increases and capital decreases, MPL rises while MPK falls.
• B) as labor increases and capital decreases, MPL falls while MPK rises.
• C) as labor increases and capital decreases, MPL and MPK both fall.
• D) as labor increases and capital decreases, MPL and MPK both rise.

---

Definitions:

Government Regulation

The act of controlling, directing, or managing activities and industries through laws and policies by governmental bodies.

Organisational Policies

Guiding principles and procedures established by a business that dictate the behavior and decisions of its employees.

Ethical Work Group

A team or group within an organization that operates in a manner consistent with moral principles and values.

Moral Quality Circle

A group dedicated to ethics and moral decision-making within an organization, focusing on maintaining high moral standards.