作者RileyYang (backpackers)
看板AGEC96
標題[經原] exercise 14 解答
時間Sat Dec 29 16:07:29 2007
選擇題:
BABCE DDDCB
CCADA CCACA
ABEDB ABECB
essay:
Given a wage (w) paid to labor (L) and rent (r) paid to land (A),
equal-cost lines have the formula
$C = rA + wL
In terms of slope and intercept, with land measured along the vertical axis,
this formula becomes
A = ($C/r) - (w/r)L
As the wage increases, the line gets steeper and tangencies must occur
further up the equal-product curves. This shows that more land will
be employed per unit of labor. Union leaders must recognize the fact
that other inputs can be substituted for labor in many production processes.
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