Question

During the last 30 years computers have changed most production processes. Use isocost-isoquant diagram analysis to...

During the last 30 years computers have changed most production processes. Use isocost-isoquant diagram analysis to show the effect the spread of computers have had on labour use during the last 30 years. Make sure you list your assumptions clearly.

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Answer #1

I have already answered it but forgot one assumption while relaxing k/l ratio. The assumption is wage does not fall so much that it leads to greater use of labour than capital. If you have any problem with answer then mention it before you post it next time. But I am 100% sure that answer is right

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