Answer to Question #97830 in Microeconomics for tugce

Question

Why do the slope of the isoquants get flatter as labor quantity gets larger and capital quantity gets smaller?

Answer 1

The slopes of isoquants get flatter and flatter as the proportion of labor to materials increase and capital quantity decrease due to the assumption of diminishing returns. The curves slope downwards because of an increase in the amount of one input. If production is to remain constant it is always important to reduce the amount of some other input. Increase in amount of one input and decrease of another creates a negative slope.