When Isoquants Are Convex to the Origin

question 78

Multiple Choice

When isoquants are convex to the origin,:

• A)the marginal rate of technical substitution is inverted.
• B)the marginal rate of technical substitution is decreasing.
• C)the marginal rate of technical substitution is constant.
• D)the marginal rate of technical substitution is increasing.

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Definitions:

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

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A business strategy focused on increasing the returns to shareholders, often prioritizing it above other considerations.

Corporate Reinvestment

The act of a company using its profits to invest back into its own operations, projects, or assets to support growth, improve products or services, and enhance shareholder value.