Provide an alternative explanation to the one given in the text for why isoquants cannot cross.
Certainly! Isoquants cannot cross each other because they represent different levels of output achieved by combining different inputs. Here's an alternative explanation:
Isoquants, or equal product curves, depict different combinations of inputs that result in the same level of output. Crossing of isoquants would imply that two different combinations of inputs can produce the same level of output, which contradicts the basic assumption of rational behavior in economics. If crossing were possible, it would mean that firms could achieve the same level of output using two different sets of inputs interchangeably, which is not realistic.
To understand this, think about it in practical terms. Let's suppose there are two isoquants representing different levels of output: isoquant A and isoquant B. If these isoquants were to cross, it would suggest that a certain combination of inputs on isoquant A (such as labor and capital) could produce the same level of output as a different combination of inputs on isoquant B. However, this contradicts the law of diminishing marginal returns, which states that as more units of a variable input (such as labor) are added while holding other inputs constant (such as capital), the additional output produced will eventually decrease. Crossing isoquants would defy this principle.
Hence, isoquants cannot cross because they represent the efficient combinations of inputs required to achieve specific levels of output, and different combinations of inputs cannot produce the same level of output interchangeably.