1. Show as we did for indifference curves, under what conditions we expect that (Hint: in youranswers, you should, where appropriate, be referring to concepts such as the marginal rate oftechnical substitution, marginal product, transitivity, and so on):(i) Isoquants slope downwards.(ii) Isoquants further from the origin represent higher output.(iii) Isoquants cannot intersect.(iv) Isoquants are convex.

Indifference curve shows the different combinations of two goods that provide the same level of…

wers, you should, where appropriate, be referring to concepts such as the ma anical substitution, marginal product, transitivity, and so on): quants slope downwards. quants further from the origin represent higher output. equants cannot intersect.

wers, you should, where appropriate, be referring to concepts such as the ma anical substitution, marginal product, transitivity, and so on): quants slope downwards. quants further from the origin represent higher output. equants cannot intersect.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Show as we did for indifference curves, under what conditions we expect that (Hint: in your
answers, you should, where appropriate, be referring to concepts such as the marginal rate of
technical substitution, marginal product, transitivity, and so on):
(i) Isoquants slope downwards.
(ii) Isoquants further from the origin represent higher output.
(iii) Isoquants cannot intersect.
(iv) Isoquants are convex.

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