Ayushi posted an Question
August 13, 2020 • 00:25 am 30 points
  • UGC NET
  • Economics

1 other things remaining the seme, when an entrepreneur's money outlay in- creases his equiibrium point moves to (1) ahigher isoquant (2) a lower isoquant (3) r

1 Other things remaining the seme, when an entrepreneur's money outlay in- creases his equiibrium point moves to (1) Ahigher isoquant (2) A lower isoquant (3) Remains unchanged on thC Sane i (4) Moves to the left hand side of the same isoquant

1 Answer(s) Answer Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • comment-profile-img>
    Nidhi taparia Best Answer

    The correct answer is (1). When an entrepreneur's money outlay increases, ceteris paribus, his production will move to a higher isoquant. Signifying that he can now produce more quantity of both goods, their prices remaining unchanged. Producer's equilibrium will be established on a higher isoquant now.

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers