Input substitution when the input price change, Microeconomics

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Input Substitution When the Input Price Change

Isoquants and Isocosts and Production Function

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The minimum cost combination can be written as:

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- Minimum cost for a given output will occur when each dollar of input added to the production process will add an equivalent amount of output.

* Question

- If w = $10, r = $2, and MPL = MPK, which input would producer use more of? Why?

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