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In: Economics

5. (a) If input prices stay the same, a firm has the same output target, and...

5. (a) If input prices stay the same, a firm has the same output target, and there is neutral technological change, how does this affect the quantity of input the firm uses to produce the target output at minimum cost? (b) How does this affect the factor intensity of the firm’s choice? (c) Give a real example from history – any example -- of non-neutral technical change and tell me whether it was capital- or labor-saving.

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Rahul Sunny answered 1 year ago
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