QUESTION 3 Which of the following is NOT a feature of Isoquants? o a. cross each

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QUESTION 3 Which of the following is NOT a feature of Isoquants? o a. cross each other b. have a negative slope c. represent levels of output o d. higher Isoquants represents higher levels of output QUESTION 4 Figure 2 Capital Graph M Capital Graph Z labor labor Refer to Figure 2. Which of the following statements is correct? a. the MRTS is higher on Graph Z than on Graph M b. the MRTS is constant on Graph M c. the MRTS is lower on Graph Z than on Graph M d. the MRTS is constant on Graph Z QUESTION 5 A point on the supply curve Click Save and Submit to save and submit. Click Save All Answers to save all answers rch

Explanation / Answer

3) Option A. If two isoquants cross each other it would imply different ouput levels along the same isquant which is not true. Moreover, its slope is diminishing and is negative, higher isoquants imply higher output level and that each of them is associated with a given level of output

4) Option D. As you can see, the MRS is falling for M but is constant for Z since Z has perfect substitutability between factors.

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