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Isoquants are convex to the origin because of:
Aa constant marginal rate of technical substitution
Bthe diminishing marginal rate of technical substitution
Cthe fixed supply of land
Dincreasing returns to scale
Answer & Solution
Correct answer: B. the diminishing marginal rate of technical substitution
1. Isoquants are negatively sloped and convex to the origin.
2. Convexity arises because the marginal rate of technical substitution diminishes as one moves down the curve, mirroring indifference curves.
3. The schedule confirms MRTS falling from 4 to 3 to 2 to 1 as more X is used.
4. So the cause is a diminishing MRTS; a constant MRTS would give a straight line, and the other options are unrelated.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.23_
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