Suppose over time that a firm’s production process undergoes capital-saving technological progress. This implies

Suppose over time that a firm’s production process undergoes capital-saving technological progress. This implies

(1) the isoquants corresponding to any particular level of output will shift outward from the origin and the MRTSL,K along any ray from the origin will increase.

(2) the isoquants corresponding to any particular level of output will shift outward from the origin and the MRTSL,K along any ray from the origin will decrease.

(3) the isoquants corresponding to any particular level of output will shift inward toward the origin and the MRTSL,K along any ray from the origin will increase.

(4) the isoquants corresponding to any particular level of output will shift inward toward the origin and the MRTSL,K along any ray from the origin will decrease.

why choose(3)?

When a production function can be expressed as q = min{aK, bL}, the relationship between capital and labour in the production function is that

(1) capital and labour are perfect substitutes, and the isoquants are linear.

(2) capital and labour must be combined in fixed proportions, and the isoquants are L-shaped.

(3) capital and labour are easily substituted, and the isoquants are convex to the origin.

(4) capital and labour are perfect substitutes, and the isoquants are L-shaped.

why choose (2)?

Suppose that capital and labour are perfect complements in a one-to-one ratio in a firm’s production function. The firm is currently at an efficient production level, employing an equal number of machines and workers. Suppose the cost of labour were to double and the cost of capital were to fall by half. If the firm wanted to produce the previous level of output, the firm would hire

(1) the same amounts of labour and capital.

(2) twice as much labour as capital.

(3) more labour and less capital.

(4) less labour and more capital.

why choose (1)?

Suppose in a particular production process that capital and labour are perfect substitutes so that three units of labour are equivalent to one unit of capital. If the price of capital is $4 per unit and the price of labour is $1 per unit, the firm should.

(1) employ labour only.

(2) employ capital only.

(3) use three times as much capital as labour.

(4) use three times as much labour as capital.

why choose (1)?







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10