Answer to Question #51408 in Microeconomics for macha
to produce a recorded CD, q=1, the firm uses one blank disk, D=1 and the service of a recording machine M=1 for one hour.
a) draw an isoquant for this production process
b) explain the reason for its shape.
a) If we draw an isoquant for this production process, it will not be symmetric, because the marginal product of labor is 2 and the marginal product of capital are not equal.
b) The reason for its shape is the inequality of marginal products of capital and labor.
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