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:

Marginal Product

The additional output produced by employing one more unit of a specific factor of production, keeping other inputs constant.

Equilibrium Quantity

The level of output at which the quantity supplied equals the quantity demanded, reflecting a market balance between sellers and buyers.

Land Market

The land market refers to the supply and demand dynamics of land for various uses, influencing prices and availability within an economy.

Marginal Productivity

The additional output derived from the use of one more unit of a factor of production, holding all other factors constant.