More than one way to skin a cat

• Calculate CTIS monthly payroll, taxes, benefits:

  • 1 PC, 1 accountant
  • Or, paper, pencils, and 10 accountants

• payroll=f(K,L)

• isoquant: different combinations of inputs to yield given output

capital

labor

Q1

Q2

computer

paper &

pencils

1

10

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