Answer to Question #144572 in Microeconomics for asif

Question

Fixed Proportions Technology (Leontief)
(a) Process 1 uses at least b11 units of z1 and b12 units of z2 to produce one unit of output.
Draw the isoquant for y = 1, and distinguish between the technical and output-efficient
(z1, z2) points. Suppose that at least yb11 units of z1 and yb12 units of z2 are required to
produce y units of output, so that the production function for process 1 is

y = min [ z1 / b11, z2/b12]

Draw the isoquant map for the process. What does the economic region look like?

Answer 1

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