2. Consider the following graphical presentation as the optimal combination of a firm: Capital IC Labor Construct a single graphical presentation indicating the following conditions: a. Price of Labor increases but capital still the same. b. Two months after, both price of inputs declines proportionately. c. Five months after, the price of capital increases while the labor still the same.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2. Consider the following graphical presentation as the optimal combination of a
firm:
Capital
OLE
IC
Labor
Construct a single graphical presentation indicating the following conditions:
a. Price of Labor increases but capital still the same.
b. Two months after, both price of inputs declines proportionately.
c. Five months after, the price of capital increases while the labor still the
same.
d. Expansion path.
GE
Transcribed Image Text:2. Consider the following graphical presentation as the optimal combination of a firm: Capital OLE IC Labor Construct a single graphical presentation indicating the following conditions: a. Price of Labor increases but capital still the same. b. Two months after, both price of inputs declines proportionately. c. Five months after, the price of capital increases while the labor still the same. d. Expansion path. GE
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