Discuss iso quants of perfect substitutes with example Long ans... | Filo

SOLVED: For each of the following examples, draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case? a. A firm can hire only full-time employees to produce its output, or it can hire some combination of fulltime and part-time employees. For each full-time worker let go, the firm must hire an increasing number of temporary employees to maintain the same level of output. b. A firm finds that it can always trade two units of labor for one unit