Case B: an isoquant representing combination of wash bay time and worker time would be form a right angle because 30 minutes of wash bay and 30 minutes of worker time are needed in equal proportion for each additional car wash. Case C: an isoquant representing a combination of robotic ca...
capital to produce the same level of output. In between these two are the combinations B, C and D using varying amounts of capital and labour and giving the same output. If we plot all these combinations and join the various points showing these combinations, we get the equal product ...
c. The isoquant and the isocost line are tangent at the optimum combination of x1 and x2 f. The marginal product of each input divided by its price is equal to the marginal product of every other input divided by its price Approx x1 x2 MRS MPP1 MPP2 MPP1/w1 MPP2/w2 MRS -w2...
What is the relation between MRS (Marginal Rate of Substitution) and MRT (Marginal Rate of Transformation) at autarky equilibrium? Are they equal? Why? At L = 4 and K = 4, the marginal product of labor is 2 and the marginal product of...