Re: SAU PAPER

Posted by jack on Apr 01, 2014; 4:42am
URL: http://discussion-forum.276.s1.nabble.com/SAU-PAPER-tp7585693p7585875.html

All inferior good need not necessarily negative marginal utility, similarly, all inferior input need not negative marginal product. If these statement are true then your isoquant will not hold their standard shape and becomes upward sloping because more labor means more capital. So we need positive marginal product if good are inferior.