Jamani Irrigators has projected that a unit of output can be produced by either of the...

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Jamani Irrigators has projected that a unit of output can be produced by either of the following three combinations of [^]: A = [14] A = 2 = [4] A3 = A3 = [12] i) Plot the vectors for A1, A2 and A3. [4 Marks] ii) Construct an isoquant for output Q = 1. How many kinks does the isoquant have? iii) Draw the activity rays for A1Q1, A2Q2, A3Q3. [3 Marks] [4 Marks] iv) Considering the assumption of constant return to scale, construct an isquant for Q = 2. v) Suppose now A4 = [9] [2 Marks] is also capable of producing a unit of output, can you include it in isoquant Q = 1? Explain your answer. [2 Marks] Jamani Irrigators has projected that a unit of output can be produced by either of the following three combinations of [^]: A = [14] A = 2 = [4] A3 = A3 = [12] i) Plot the vectors for A1, A2 and A3. [4 Marks] ii) Construct an isoquant for output Q = 1. How many kinks does the isoquant have? iii) Draw the activity rays for A1Q1, A2Q2, A3Q3. [3 Marks] [4 Marks] iv) Considering the assumption of constant return to scale, construct an isquant for Q = 2. v) Suppose now A4 = [9] [2 Marks] is also capable of producing a unit of output, can you include it in isoquant Q = 1? Explain your answer. [2 Marks]

Answer rating: 100% (QA)

i Plotting the vectors for A1 A2 and A3 The vectors A1 A2 and A3 are plotted on a 2D plane as shown ... View the full answer