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>>Why are isoquants negatively-sloped?
Along a single isoquant, the firm can substitute the use of one input for another while holding the total level of output constant
Because the farther the isoquant is from the origin, the higher the level of output
Due to the effects of diseconomies of scale
Because price and quantity demanded are inversely related
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Productivity -Numerically Defined Total factor productivity (TFP) = Pt = Ot/(L+C+R+Q) Partial factor productivity (PFP) = Ot/L or C or Ot/a combination of inputs Pt
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