New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    Locus point of Isoquants wherein the marginal

    productivity of one of the factors is 0 is called
    A Contact curve Correct Answer Incorrect Answer
    B Expansion path Correct Answer Incorrect Answer
    C Ridge line Correct Answer Incorrect Answer
    D Offer curve Correct Answer Incorrect Answer

    Solution

    The ridge lines are the locus of points of isoquants where the marginal products (MP) of factors are zero. The upper ridge line implies zero MP of capital and the lower ridge line implies zero MP of labour. Production techniques are only efficient inside the ridge lines. The marginal products of factors are negative and the methods of production are inefficient outside the ridge lines.

    Practice Next