Draw a diagram indicating that inferior factors are possible

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Reference no: EM131193859

A factor of production i is called znferior if the conditional demand for that factor decreases as output increases; that is, ax, (w, y)/dy

(a) Draw a diagram indicating that inferior factors are possible.

(b) Show that if the technology is constant returns to scale, then no factors can be inferior.

Reference no: EM131193859

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