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I cannot do section 'b'. Could you help me to solve it? The question is - Assume for now that the rental rate of

labour increases to £100 per unit. Illustrate on your isoquant map the substitution effect stemming from the change in factor prices .2020-01-03 (2).png

2020-01-03 (2).png

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Original (K/L) was 1/4. If... View the full answer

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