- K K Ko Slope W To E N N Ap No Qo Q Slope Wo To Suppose Qo Is The Profit Maximizing Quantity Of Output When Wage I 1 (44.31 KiB) Viewed 22 times
K K₁ Ko Slope=-w₁/To E N₁ N₂ AP No Qo Q₁ Slope=-Wo/To Suppose Qo is the profit-maximizing quantity of output when wage i
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K K₁ Ko Slope=-w₁/To E N₁ N₂ AP No Qo Q₁ Slope=-Wo/To Suppose Qo is the profit-maximizing quantity of output when wage i
K K₁ Ko Slope=-w₁/To E N₁ N₂ AP No Qo Q₁ Slope=-Wo/To Suppose Qo is the profit-maximizing quantity of output when wage is wo and cost of capital is ro and Qu is the profit-maximizing quantity of output when wage is wi and cost of capital is ro. Which of the following is true? O a. The substitution effect on labour is smaller than the scale effect. O b. The scale effect on capital increases demand for capital. O c. The substitution effect on labour is larger than the scale effect.