Using the 3point curved line drawing tool draw a second isoq

Using the 3-point curved line drawing tool, draw a second isoquant that doubles output using a production function -200 constant returnsusinga productawa that exhibits constant returns to scale. Label your curve q Carefully follow the instructions above, and only draw the required object. ons 4 q 100 20 40 60 80 100 Labor

Solution

Now the doubled output level will be here 200. Under CRS if we double all inputs into the production process we exactly double output. Thus the total labour and capital needed will be (40,8). This is the new isoquant showing CRS, as we double inputs we exactly double output.