In 2003, Circuit City Stores, Inc., replaced skilled sales representatives who earned up to $54,000 per year
Question:
a. Show the isoquant for q = 4 with both skilled and unskilled sales representatives. Are they substitutes?
b. Draw the isocost line for C = $104 per hour.
c. Using an isocost-isoquant diagram, identify the cost-minimizing number of skilled and unskilled reps to sell q = 4 TVs per hour?
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Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
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