Suppose the price of an input used by firms with fixed-proportions production functions were to fall. Why

Question:

Suppose the price of an input used by firms with fixed-proportions production functions were to fall. Why would such a change not cause any substitution effects for these firms' input demand? Would there, however, be output effects? What would determine the size of these effects?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

Question Posted: