In case of a convex isoquant, how does MRTS behave? (a) It decreases at decreasing rate; (b) It… 1 answer below »


In occurrence of a intumescent isoquant, how does MRTS behave?

(a) It decreases at decreasing rate;

(b) It decreases at increasing rate;

(c) It neither increases nor decreases; or

(d) It increases along the isoquant.

When MRTS = 1, which of the subjoined conditions holds?

(a) MPL/MPK =2;

(b) MPL/MPK >1;

(c) MPL/MPK = 1; or

(d) MPL/MPK