Intermediate Micro economics
How do firms decide the best combination of labour and capital in production planning?
Explain how microeconomics provides answers to this, outlining key insights from microeconomics theory on Production and Costs.
Why might optimal use of capital and labour vary between firms?
Why might optimal use of capital and labour change if a new production process is invented? With respect to parts b) and c), provide interesting illustrative example(s) to compare and contrast different outcomes under different scenarios.
