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Input Substitution When the Input Price Change
Isoquants and Isocosts and Production Function
The minimum cost combination can be written as:
- 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?
cars:0,2,4,6,8 tow truck:30,27,21,12,0
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