If the price of labor increases, in order to minimize the costs of producing a given level of output, the firm manager should use

  • Less of labor and more of capital

If the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor, then in order to minimize costs the firm should use

  • Less capital and more labor
Whenever an isoquant exhibits a diminishing marginal rate of technical substitution, the corresponding isoquants are
  • Convex to the origin