Q119
An ISO-product slopes
A.
Downward to the left
B.
Downward to the right
AnswerC.
Upward to the left
D.
Upward to the right
Answer: Option B
Solution
Answer: Option B
Solution:
An ISO-product slopes downward to the right. They slope downward because MTRS of labour for capital diminishes. When we increase labour, we have to decrease capital to produce a given level of output.