Which of the Following Is NOT a True Statement About

question 4

Multiple Choice

Which of the following is NOT a true statement about isoquants?

• A) Each curve represents the particular combinations of tasks that generate the same quantity of output.
• B) Isoquants are finite in number.
• C) The absolute value of the slope is the marginal rate of technical substitution between task 2 and task 1.
• D) Isoquants differ in the quantity of output they represent.
• E) The slopes of the isoquants represent how easy it is for the firm to substitute task 1 for task 2.

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Definitions:

Cournot Duopoly

A Cournot Duopoly is a market structure where two companies control the entire market for a particular product or service, and each firm chooses its output level assuming that the other firm's decision is fixed.

Cournot Duopolists

Firms in a duopoly market structure that determine their output level assuming the output of their competitor is fixed, named after Antoine Cournot.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at various prices.

Total Costs

The overall expenditure associated with producing goods or services, embracing both fixed and variable costs.