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Unformatted text preview: y 0.8 ) = k 0.8 f(x,y) decreasing return to scale MPx = 1.8*.8(x-.2 ) decreasing as factor x increases MPy = 1.8*.8(y-.2 ) 8. ANS: a. The isoquants have a kink at the line 2 x = y. b. These are rectangular hyperbolas....
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This note was uploaded on 01/26/2010 for the course ECONOMICS EC212 taught by Professor Yu during the Spring '08 term at Mt. Holyoke.
- Spring '08