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An Economic region of production consists of

Ridge lines connect the points on an isoquant map where the marginal products of the inputs are zero (\(MP_L = 0\) on the lower ridge line and \(MP_K = 0\) on the upper…

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An Economic region of production consists of

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Ridge lines connect the points on an isoquant map where the marginal products of the inputs are zero (MPL=0MP_L = 0 on the lower ridge line and MPK=0MP_K = 0 on the upper ridge line). The 'Economic region of production' (where both inputs have positive marginal products and isoquants are negatively sloped) is the portion lying between the ridge lines.

Figure

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