Why are the capital ratios different

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a) Show the tangency points of producing some output Q in two countries with identical technology and cost. Country A has higher wage rate compared to Country B. but country B has higher price of capital than Country A, why are the capital ratios different?

b) indifference curves can be positively sloping but the isoquants can never be positively sloping. Why or why not?

c) Input prices can change the production function and also the isoquants. Explain

d) suppose a firm is currently production an output Q using two inputs 1 and 2, where MP1/w1 = MP2/w2 = 1/P = 1/MC Can it still increase the profit? why or why not?

Reference no: EM131109542

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