Question 6 [8]

6.1. Describe what an isoquant map is. (2)

6.2. Briefly explain what decreasing returns to scale is. (2)

6.3. Graphically illustrate increasing returns to scale for a movement along the 90 production line (OA) of a firm as inputs are increased along the line. (3)

6.4. What is the shape of the isoquants for a fixed-proportion production function? (1)