Problem
1. Why must an isoquant be downward sloping when both labor and capital have positive marginal products?
2. Could the isoquants corresponding to two different levels of output ever cross?
3. Why would a firm that seeks to minimize its expenditures on inputs not want to operate on the uneconomic portion of an isoquant?
4. What is the elasticity of substitution? What does it tell us?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.