Econ302-hw3-fall09 - Econ302 HomeworkAssignment3...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ302 Homework Assignment 3 Due Thursday October 15 (Questions to be graded: 1, 2, and 3) Name: Section:  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
Background image of page 1

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

View Full DocumentRight Arrow Icon
What happens to the marginal product of each individual factor as that factor is increased, and the other factor is held constant? a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/28/2009 for the course ECON 120 taught by Professor Walsh during the Fall '09 term at University of Illinois, Urbana Champaign.

Page1 / 9

Econ302-hw3-fall09 - Econ302 HomeworkAssignment3...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online