In the one-input model of production, increasing marginal product implies non-convexity of the producer choice set.

Answer the following statement true (T) or false (F)


True

Rationale:

Increasing marginal product implies a steepening slope of the production frontier -- with the producer choice set lying underneath it. The dashed line connecting the two points on the frontier lies outside the choice set -- implying that the choice set is non-convex.

Economics

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