Can an isoquant ever slop upward?explain.
It's one of the questions of my econ. assignment, can anyone help me to answer it, thank you
- garlic2010Lv 71 decade agoFavorite Answer
Another name for Isoquant is equal output curve. An isoquant tells the different combination of prodction factors that produce the same level of output. For example, production requires labour and capital. The same output level can be achieved with more capital and less labour, or more labour and less capital.
When the isoquant is upward sloping, it means that using more factors produce the same level of output as using fewer factors. 100 man-hours gives the same output as 1 man-hour with the same amount of capital. Of course, it cannot be true because it implies there is no problem of scarcity. If the isoquant was upward sloping, very little resources were needed to produce anything and there would be no economic problems.