Isoquant is the locus of all possible combinations of capital and labor which can be produced at given level of output. The slope of isoquant is MRTS or marginal rate of technical substitution shows the tradeoff between the two inputs hence it is diminishing implies when more capital is used for production then some amount of labor is given up.
For a fixed proportion production function,
Q= min (K, L)
The shape of the function is L shaped and both inputs are usedin a definite proportion. The slope is not definate in this case.
B) What happens to the MRTS as we move along an isoquant? How would you produce each level of out...