Explain EACH of the following concepts, using diagrams where appropriate. (a) Indicate how the linear programming...

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Explain EACH of the following concepts, using diagrams where appropriate. (a) Indicate how the linear programming and neoclassical approaches differ in each case: Production function3B (i) (ii) Isoquant; and (iii) Marginal rate of technical substitution. (b) The Tees Valley Bus Company finds it can maintain its service with the following combinations of buses and maintenance staff: 42 43 44 41 Number of Buses Number of Maintenance Staff 40 22 50 40 32 26 Buses are hired from the National Bus Company (NBC) at £2,500 per week each, and maintenance staff cost £500 per week each to employ. (i) Sketch the bus company's isoquant for its service, setting out your assumptions, and explaining its derivation. Indicate the technically feasible, inefficient and infeasible regions, giving an explanation in each case. (ii) Evaluate the marginal rates of technical substitution along this isoquant. Using this information, find the cost-minimizing position and verify it. (iii) What increase in the hire charge for buses would make the company increase the number of maintenance staff it hired, and hire fewer buses? Why would the ownership of the buses make no difference to your answer in part (i) if the bus company could hire out any buses it did not use at £2,500 per week? Explain EACH of the following concepts, using diagrams where appropriate. (a) Indicate how the linear programming and neoclassical approaches differ in each case: Production function3B (i) (ii) Isoquant; and (iii) Marginal rate of technical substitution. (b) The Tees Valley Bus Company finds it can maintain its service with the following combinations of buses and maintenance staff: 42 43 44 41 Number of Buses Number of Maintenance Staff 40 22 50 40 32 26 Buses are hired from the National Bus Company (NBC) at £2,500 per week each, and maintenance staff cost £500 per week each to employ. (i) Sketch the bus company's isoquant for its service, setting out your assumptions, and explaining its derivation. Indicate the technically feasible, inefficient and infeasible regions, giving an explanation in each case. (ii) Evaluate the marginal rates of technical substitution along this isoquant. Using this information, find the cost-minimizing position and verify it. (iii) What increase in the hire charge for buses would make the company increase the number of maintenance staff it hired, and hire fewer buses? Why would the ownership of the buses make no difference to your answer in part (i) if the bus company could hire out any buses it did not use at £2,500 per week?