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Commerce · Q406

Economics

Graduate and Post Graduate · Commerce · question 406

Q406

Statement (A): The isoquant curves are drawn convex to the origin due to the diminishing technical rate of substitution. Statement (B): The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.

A.
Statement (A) and (B) are correct
B.
Statement (A) is correct but (B) is incorrect
Answer
C.
Statement (A) is incorrect but (B) is correct
D.
Statement (A) and (B) are incorrect

Answer: Option B

Solution

Answer: Option B
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