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QUESTION
Draw the case of perfect substitutes for factors K and L for a map of isoquants. Add an isocost line, if you know that w/r MRTS. Show the point of...
Draw the case of perfect substitutes for factors K and L for a map of isoquants.
Add an isocost line, if you know that w/r > MRTS.
Show the point of cost minimization.
Explain
ISOCOST AND ISOQUANTS LINES INPUT (K) CBA curved lines are the isoquant curvesStraight lines represents isocost Q1 Q2 Q3 INPUT (L)Points A,B and C are the cost minimizing points(profit...