Truffles are a tasty fungus traditionally located by trained pigs. Suppose the production function for truffles...
Truffles are a tasty fungus traditionally located by trained pigs. Suppose the production function for truffles is given by Q=2K0.5 [0.5 , where L is the number of pig handlers, and K is the number of pigs. Capital (K) 9- 42- -E =- - A 4 Labor (L) Goolsbee et al., Microeconomics, 3e, © 2020 Worth Publishers Let QA repreent the isoquant closest to the origin and QB represent the isoqant furthest from the origin. a. The isoquants, QA and QB, should be labelled QA = 4 and QB = 1 1, respectively. b. Suppose that an improvement in pig genetics results in technological change, so that now Q = 4.5K0.5L0.5. As a result, the isoquants should be relabeled QA = and QB =