The slope of the isoquant at Point B is -9

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 18P
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N4

Consider the production function Q=L0SKOS.
Capital (K)
90
81
70
60
50 -
40
30
20
B.
Q= 9
9 10 Labor (2)
The slope of the isoquant at Point B is
Transcribed Image Text:Consider the production function Q=L0SKOS. Capital (K) 90 81 70 60 50 - 40 30 20 B. Q= 9 9 10 Labor (2) The slope of the isoquant at Point B is
Capital cannot be adjusted in the short run because:
there is not sufficient time to adjust it.
it is too expensive to alter the capital stock.
capital markets do not function well enough in the short run.
the firm has yet to decide what product to produce, so it does not yet know what kind of
capital it needs.
Transcribed Image Text:Capital cannot be adjusted in the short run because: there is not sufficient time to adjust it. it is too expensive to alter the capital stock. capital markets do not function well enough in the short run. the firm has yet to decide what product to produce, so it does not yet know what kind of capital it needs.
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