A firm is producing a given amount of output at least cost using a mix of labor

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A firm is producing a given amount of output at least cost using a mix of labor and capital (which exhibit some degree of substitutability). Using an isoquant graph, show that if one input price increases, least-cost production calls for the firm to reduce that input (and increase the use of the other).

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Managerial economics

ISBN: 978-1118041581

7th edition

Authors: william f. samuelson stephen g. marks

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