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Firm A and B require labour and machines to produce output. Firm A has L-shaped isoquants, and Firm B has linear (straig
Posted: Wed Jul 06, 2022 6:34 pm
by answerhappygod
- Firm A And B Require Labour And Machines To Produce Output Firm A Has L Shaped Isoquants And Firm B Has Linear Straig 1 (195.99 KiB) Viewed 10 times
Firm A and B require labour and machines to produce output. Firm A has L-shaped isoquants, and Firm B has linear (straight), downward-sloping isoquants. Which of the following is true? O a. Workers in Firm B are more substitutable by machines. O b. It is not possible to compare the substitutability of workers across two firms. O c. The answer depends on the wage and cost of machines faced by each firm. O d. Workers in Firm A are more substitutable by machines.