14. Supposing that a single consumer works for a firm, the quantity of labor input for the firm, N, is identical to the quantity of hours worked by the consumer, h – 1. Graph the relationship between output produced, Y on the vertical axis and leisure hours of the consumer, 1, on the hor- izontal axis, which is implied by the production function of the firm. (In Chapter 5, we refer to this relationship as the production possibilities frontier.) What is the slope of the curve you have graphed?

14. Supposing that a single consumer works for a firm, the quantity of labor input for the firm, N, is identical to the quantity of hours worked by the consumer, h – 1. Graph the relationship between output produced, Y on the vertical axis and leisure hours of the consumer, 1, on the hor- izontal axis, which is implied by the production function of the firm. (In Chapter 5, we refer to this relationship as the production possibilities frontier.) What is the slope of the curve you have graphed?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 8P

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