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Suppose that additional units of capital affect the marginal productivity of labor. This is not ...

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Suppose that additional units of capital affect the marginal productivity of labor. This is not ...

Suppose that additional units of capital affect the marginal productivity of labor. This is not unrealistic. Word processors increase the marginal productivity of secretaries. On the other hand, robotic equipment can completely replace a worker and, thereby, lower the marginal productivity of labor. Given this possibility, determine the conditions under which isoquants will not be convex (i.e.: concave).

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Microeconomics

Edition: 6^th

Author: Perloff

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