Question

The negative slope on the iso quant shows ________.

That when the amount of one factor is increased the quantity of the other factor must be reduced

Declining cost of production

Perfect substitutability of factors

Declining marginal rate of substitution​

Answer 1

declining the marginal rate of substitution

Answer 2

The correct answer is option (a) That when the amount of one factor is increased the quantity of the other factor must be reduced

Explanation:

• An isoquant curve is a concave-shaped line on a graph, used in the study of Microeconomics, that charts all the factors, or inputs, that produce a specified level of output.
• The isoquant curve works on the principle of the marginal rate of technical substitution, which shows the rate at which you can substitute one input for another, without changing the level of resulting output.
• An isoquant curve slopes downward, or is negatively sloped shows that the that the same level of production only occurs when increasing units of input are offset with lesser units of another input factor.