Question

Isoquant is just an alternative way of representing the production function. Which one of the following is NOT a characteristic of an isoquant.

• A. The set of all possible combinations of the two inputs that yield the same maximum possible level of output.
• B. Isoquants are positively sloped.
• C. Isoquants are negatively sloped.
• D. Each isoquant represents a particular level of output and is labelled with that amount of output.

Hint:

Just like consumer indifference curves, producer isoquants are negatively sloped and convex to the origin; they can never slope upwards under rational production.

Answer 1

The Correct Option is B

Concept:
An isoquant (equal-product curve) is a graphical tool in microeconomics representing all combinations of two factor inputs that produce a constant level of total output.

Step 1: Properties of Standard Isoquants:
1. An isoquant identifies all input combinations yielding a uniform maximum output level.
2. Isoquants slope downward from left to right (negative slope). Because inputs have positive marginal products, employing less of one input requires employing more of another to maintain unchanged production.
3. Each distinct isoquant corresponds to a specific quantitative output level and is labeled accordingly.
4. Isoquants are convex to the origin due to the diminishing Marginal Rate of Technical Substitution (MRTS).

Step 2: Identifying the False Statement:
A positively sloped curve implies that increasing both inputs simultaneously keeps output constant, which violates the assumption of positive marginal productivity of inputs.
Therefore, stating that isoquants are positively sloped is incorrect and does not represent a true property.
Final Answer:
Hence, statement (B) is NOT a characteristic of an isoquant.