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To produce cake, you need eggs E and premixed ingredients I. Each cake needs exactly two eggs and one package of ingredients. When you add
To produce cake, you need eggs E and premixed ingredients I. Each cake needs exactly two eggs and one package of ingredients. When you add three eggs to one package of ingredients, you still produce only one cake. Similarly, when you add two packages of ingredients to two eggs, you still produce only one cake. a. Write down the production function that describes the technology of cake production. (5 points) b. Draw an isoquant map for this production function. (5 points) 0. A bird u outbreak has caused an egg shortage. For the short-run, you are stuck with only one dozen eggs. On 3 separate graphs, draw your total product, average product, and marginal product curves. (12 points)
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