Author Question: Isoquants are downward sloping because (Read 48 times)

james · **on:** Apr 19, 2019

Question 1

Refer to the information provided in Figure 7.7 below to answer the question(s) that follow.

Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant
B to isoquant
A, the number of roller skates produced

◦ decreases.
◦ increases.
◦ remains constant, but Roller Skates Unlimited uses more capital and more labor.
◦ remains constant, but input prices have risen.

Question 2

Isoquants are downward sloping because

◦ as more units of an input are used to produce a product, total cost increases.
◦ as more units of an input are used to produce a product, the firm's marginal productivity increases.
◦ if more of one input is used, then less of the other input must be used to keep output constant.
◦ Both as more units of an input are used to produce a product, the firm's marginal productivity increases and if more of one input is used, then less of the other input must be used to keep output constant

zoeyesther · **Reply #1 on:** Apr 19, 2019

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