Use an isoquant diagram to show how the optimal combination
Use an isoquant diagram to show how the optimal combination of labor and capital changes when the wage rate declines if labor and capital are substitutes in production. Be sure to neatly and completely label your diagram.
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a firmrsquos demand function is as follows qx 400 - 5px py - 2pz 2i assume initial values of px 50 py 20 pz 20 i
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use an isoquant diagram to show how the optimal combination of labor and capital changes when the wage rate declines if
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