2. Consider the following graphical presentation as the optimal combination of a firm: Capital IC Labor Construct a single graphical presentation indicating the following conditions: a. Price of Labor increases but capital still the same. b. Two months after, both price of inputs declines proportionately. c. Five months after, the price of capital increases while the labor still the same.

2. Consider the following graphical presentation as the optimal combination of a firm: Capital IC Labor Construct a single graphical presentation indicating the following conditions: a. Price of Labor increases but capital still the same. b. Two months after, both price of inputs declines proportionately. c. Five months after, the price of capital increases while the labor still the same.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 8PA

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