Explore BrainMass

Explore BrainMass

    Isoquants, marginal rate and average product

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Which is False and which is True?

    1.A change in input prices shifts the isoquant map
    2.Convex isoquants mean that the marginal rate of technical substitution decreases as a firm substitutes labor for capital
    3. A change in cost shifts the isocost curve
    4. At the optimal input choice, the rate at which the firm can substitute labor for capital in production is equal to the rate at which the firm can substitute labor for capital in the market
    5. A firm plans in the long run and operates in the short run
    6. In the short run, a firm can change some but not all of its inputs
    7. In the long run all inputs are variable
    8. In the short run all inputs are fixed
    9. If average product is increasing, then marginal product must be greater than average product
    10.Economies of scale exist when long run average cost decreases as output increases

    © BrainMass Inc. brainmass.com December 15, 2022, 4:50 pm ad1c9bdddf

    Solution Summary

    The expert examines isoquants, marginal rates and average products.