1. What is an isoquant? Why an isoquant is typically downward sloping and convex?

An isoquant is a graphical representation of all the combinations of

inputs (typically labor and capital) that produce a given output level.
Isoquants are typically downward sloping and convex because they
reflect the law of diminishing marginal returns, which states that as more
units of one input are added while holding the other input constant, the
marginal productivity of the variable input eventually decreases. The
convexity of the isoquant reflects the substitution effect, meaning that
the firm can substitute one input for another as the marginal productivity
of each input changes.

2. What is the difference between the law of diminishing returns and the law of
diminishing marginal rate of technical substitution? Give an example to illustrate the
difference.
The law of diminishing returns states that as more units of one
input (e.g. labor) are added to a production process while holding
the other input (e.g. capital) constant, the marginal physical
product of the variable input eventually decreases.
The law of diminishing marginal rate of technical substitution
refers to the observation that as more of one input (e.g. labor) is
substituted for another input (e.g. capital) in a production process,
the marginal rate of technical substitution eventually decreases.
The marginal rate of technical substitution is the rate at which one
input can be substituted for another input, such that the level of
output remains constant.
For example, consider a baker who produces cakes using flour and
sugar. If the baker adds more sugar to the recipe while keeping the
amount of flour constant, the cakes will become sweeter, but
eventually the marginal effect of adding more sugar will decline.
This is an example of the law of diminishing returns.
On the other hand, if the baker is facing a shortage of sugar, they
may need to substitute some of the sugar with flour. If the baker
starts by substituting a small amount of sugar with flour, the cakes
will become less sweet but the quality will still be acceptable.
However, as the baker continues to substitute more sugar with
 flour, the marginal rate of technical substitution will eventually
decline, meaning that the baker will have to add an increasing
amount of flour for each unit of sugar that is substituted. This is an
example of the law of diminishing marginal rate of technical
substitution.

3. Add graphs to each of the Excel tables: 5-1 for lecture, 5-2 for lecture, 5-3 for lecture, 5-4
for lecture, 5-5 for lecture, and submit the excel spread sheets with your discussion
assignment.
4. Edit the original table with out a graph
5. Add outline of graph data range in color blue
6. Create a line graph
7. Edit the size of the graph to see the lines
8. Format the graph legend to 'Left' side of graph.
9. Add the title - press '=' and reference the chart title, and press enter.