Isoquants Are Downward Sloping Because

question 150

Multiple Choice

Isoquants are downward sloping because

• A) as more units of an input are used to produce a product, total cost increases.
• B) as more units of an input are used to produce a product, the firm's marginal productivity increases.
• C) if more of one input is used, then less of the other input must be used to keep output constant.
• D) Both B and C

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Definitions:

Employee Benefit

Non-wage compensations provided to employees in addition to their salaries, such as health insurance, retirement plans, and paid time off.

Flexible Benefit Programs

Programs that allow employees to select the mix of benefits and services that will answer their individual needs. Also known as cafeteria benefit programs.

Vacation Time

Allocated time off work provided by employers for employees to rest, travel, or engage in personal activities.

Employee Discount Plans

Benefits offered by employers that allow their employees to purchase the company's products or services at a reduced price.