4. Suppose a firm makes a single output using a single input. Think of the input as labor. Denote quantities of these outputs and inputs by q and I respectively. Suppose that the firm's production function f is given by f(10 = 0 if I < 1 and f(1) = 1-1 otherwise. Clearly draw a diagram of this firm's production set. Be sure to label the axes.

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4. Suppose a firm makes a single output using a single input. Think of the input as labor. Denote
quantities of these outputs and inputs by q and I respectively. Suppose that the firm's
production function f is given by f(10 = 0 if | < 1 and f(1) = 1-1 otherwise. Clearly draw a diagram
of this firm's production set. Be sure to label the axes.
Transcribed Image Text:4. Suppose a firm makes a single output using a single input. Think of the input as labor. Denote quantities of these outputs and inputs by q and I respectively. Suppose that the firm's production function f is given by f(10 = 0 if | < 1 and f(1) = 1-1 otherwise. Clearly draw a diagram of this firm's production set. Be sure to label the axes.
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