Econ302-hw3-summer09 - Econ302 Homework Assignment 3 Due...

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Econ302 Homework Assignment 3 Due Thursday June 4 (Questions 1, 2, and 3 will be graded) Name: 1. 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. c. A firm requires exactly two full-time workers to operate each piece of machinery in the factory. 1
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What happens to the marginal product of each individual factor as that factor is increased, and the other factor is held constant? a.
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This note was uploaded on 06/11/2009 for the course ECON 302 taught by Professor Toossi during the Spring '08 term at University of Illinois at Urbana–Champaign.

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Econ302-hw3-summer09 - Econ302 Homework Assignment 3 Due...

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