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Aaliyah Francois
on Oct 25, 2024

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Two isoquants, which represent different output levels but are derived from the same production function, cannot cross because:

A) isoquants represent different utility levels.
B) this would violate a technical efficiency condition.
C) isoquants are downward sloping.
D) additional inputs will not be used by profit maximizing firms if those inputs decrease output.
E) Both B and D are true.

Isoquants

Curves that represent combinations of various input factors that produce the same output level.

Production Function

A mathematical relationship that describes how inputs like labor and capital are converted into outputs, representing the maximum output possible from a given set of inputs.

Technical Efficiency

The ability of a firm to get the maximum output from a given set of inputs, minimizing waste.

  • Analyze conditions under which isoquants can or cannot cross and the implications for production efficiency.
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Hannah WilkersonOct 26, 2024
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