Re: isi prep

Posted by Hargun on Jul 04, 2012; 7:11pm
URL: http://discussion-forum.276.s1.nabble.com/isi-prep-tp7578993p7579053.html

ummm firstly are we assuming zero substitutability between inputs or is it given. also isn't plant two straight-away more efficient than the first? it requires 3,2 for one unit while first requires 5,2. if so, then the second plant's isoquant should be the firm's isoquant. then min[y1/3,y2/2] is the answer (assuming no substitutability, of course).. Is this correct?