Which one is not a property of Isoquant?
A. Negative slope
B. Concave to the origin
C. Non-intersecting and non-tangential
D. Upper isoquants represent higher level of output
Answer: Concave to the origin
Isoquant is a curve on a graph that shows the production points in which the same amount of output can be produced using different combinations of inputs. Isoquants are concave to the origin and convex to the axis.
Isoquant are said to be convex to the axis because when there is more than one input, an increase in one input leads to more than proportionate increase in output. This is because the second input can substitute for the first input, thus leading to an increase in total output. An isoquant is a contour line connecting points of equal productivities.
The property of convexity refers to the shape of an iso-product curve, which shows all possible ways to produce a particular level of output from two inputs. The iso-product curve has convexity property as it bulges outwards when it moves away from the origin, which means that as one input increases, there would be more than proportionate increase in output produced.