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Suppose the production function for tea (T) is T= min(2L,5 W ), where L= tea leaves (in tablespoons), and W = water in (cups).It means
Suppose the production function for tea (T) is T= min(2L,5W), where L= tea leaves (in tablespoons), andW= water in (cups).It means that 1/2 tablespoon of tea leaves and 1/5 cups of water are neededto produce one cup of tea. Suppose the price of water is zeroand the price of tea leaves is $0.1per tablespoons. The equation of the expansion pathis...
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