Suppose that the additional units of capital affect the marginal productivity of labor (labor). This is not unrealistic. Word processors increase the marginal productivity of secretaries. On the other hand, robotic equipment can completely replace a worker and, therefore, reduce the marginal productivity of labor. Given this possibility, determine the conditions under which the isoquants will not be convex, that is, concave.

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Solution The slope of the isoquant will not be convex when the ... View the full answer