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en:production-function-example [2018/07/23 07:49]
federico
en:production-function-example [2018/07/23 07:59] (current)
federico
Line 79: Line 79:
  
  
 +===== Example 6: Perfect Substitutes Production Function =====
 +
 +In the Perfect Substitutes Production Function, one input can be substituted for another without any effect in the quantity produced. ​
 +
 +Example:
 +
 +Q = aL + aK
 +
 +If we increase L by 10 and at the same time, we decrease K by 10, the output will be the same. 
 +
 +{{:​en:​perfect-substitutes-production-function.png?​nolink|}}
  
en/production-function-example.txt · Last modified: 2018/07/23 07:59 by federico