Input substitution when the input price change, Microeconomics

Assignment Help:

Input Substitution When the Input Price Change

 Isoquants and Isocosts and Production Function

2278_production function.png

1616_input substitution.png

The minimum cost combination can be written as:

1726_input substitution1.png
- 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? 


Related Discussions:- Input substitution when the input price change

Describe the labour market information, Question 1: a) Describe the lab...

Question 1: a) Describe the labour market Information. b) What are the basic factors that affect the labour market trend? c) Explain the influence of these factors on th

Transition economies, Former communist economies which is, with varying deg...

Former communist economies which is, with varying degrees of enthusiasm and have embraced CAPITALISM.

Help, In a competitive market, the market demand is Qd = 150 - 5P and the m...

In a competitive market, the market demand is Qd = 150 - 5P and the market supply is Qs = 5P - 10. As a result of a price ceiling imposed at $14, the new consumer surplus and produ

Endowendowment, How to solve questions of endowments?

How to solve questions of endowments?

Compare between perfect competition and monopoly, Question 1: Compare a...

Question 1: Compare and contrast between perfect competition and monopoly. Which of the two types of market structures is efficient? Question 2: Prepare a short notes

Large economies of scale, is the industry of electric power on the large e...

is the industry of electric power on the large economies scale

Subject matter of economics, Ask factor affects elasticity of demandquestio...

Ask factor affects elasticity of demandquestion #Minimum 100 words accepted#

World trade organization, World Trade Organization: An international econom...

World Trade Organization: An international economic organization based in Geneva, Switzerland,formed in 1995 which is dedicated to promoting greater trade and investment among its

Bandwagon effect - network externalities, The Bandwagon Effect - This i...

The Bandwagon Effect - This is desire to be in style, to have a commodity because almost everyone else has it, or to indulge in it. - This is major objective of marketing an

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd