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The isoquant curve is down sloping because it represents the trade-off between two inputs, typically labor and capital, while maintaining the same level of output. As one input is increased, the other must be decreased to keep production constant, reflecting the principle of diminishing marginal returns. This negative relationship indicates that to substitute one input for another, a firm must reduce the quantity of one input to maintain efficiency and output levels.
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What will be the shape of an isoquant when the elasticity of substitution is infinity?
when the elasticity of substitution is infinity the isoquant will be a straight line sloping downward towards right.
What are the conditions under which an isoquant will not be convex?
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
Explain the types and characteristics of isoquant curve with the help of an illustration?
negative slope, convexity to its origin
Is the demand curve always downward sloping?
Yes,it's always downward sloping
What will be the shape of an isoquant when the elasticity of substitution is infinity?
when the elasticity of substitution is infinity the isoquant will be a straight line sloping downward towards right.
What are the conditions under which an isoquant will not be convex?
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
Explain the types and characteristics of isoquant curve with the help of an illustration?
negative slope, convexity to its origin
Is the demand curve always downward sloping?
Yes,it's always downward sloping
How does a market demand curve differ from a demand curve How are they similar?
downward sloping
What is an isoquant explain it graphically.?
show how the price elasticity of demand is graphically measured along a liner demand curve?
When the supply curve is upward sloping?
Supply curve will be upward sloping in two reason,the first reason is know as the income effect and the second is know as substitution effect.
Distinguish between indifference curve and isoquants?
indifference curve is a combination of two commodities. where as, isoquant curve shows a relationship between of variable factor i.e. labour and fixed factor i.e. capital.
What does a downward sloping demand curve signify in economics?
A downward sloping demand curve in economics signifies that as the price of a good or service decreases, the quantity demanded by consumers increases.
Why does a production possibility curve have a downward sloping curve?
PPC curve slopes downward for the efficient resouress of another commidty
The law of supply implies that the supply curve is?
Upward-sloping
