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economics question 3) A firm with a Cobb-Douglas production function is operating at a certain point along its isoquant. You know that their TRS (Technical

economics question

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3) A firm with a Cobb-Douglas production function is operating at a certain point along its isoquant. You know that their TRS (Technical Rate of Substitution) at this point is 0.75. If w1 = 2 and wy = 2, can you advise the firm in any way on how to decrease its costs without decreasing production? Should it hire more x, and less x2? More x, and less x,? Should it not do anything? Briefly explain your answer using a graph and providing a brief explanation. (10 points)

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