{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ302-hw3-spring09 - Econ302 Homework Assignment 3 Due...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ302 Homework Assignment 3 Due Thursday March12 (Questions 1, 3, and 5 will be graded) Name: Section:  1. Diminishing returns to a single factor of production and constant returns to scale are  not inconsistent.  Discuss. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2.  For each of the following examples, draw a representative isoquant.  What can you say  about the marginal rate of technical substitution in each case? a. A firm can hire only full-time employees to produce its output, or it can hire some  combination of full-time and part-time employees.  For each full-time worker let  go, the firm must hire an increasing number of temporary employees to maintain  the same level of output. b. A firm finds that it can always trade two units of labor for one unit of capital and  still keep output constant. 2
Background image of page 2
c. A firm requires exactly two full-time workers to operate each piece of machinery  in the factory.  
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}