# Tag Info

The production function has a particular feature: the inputs are perfectly substitutable. One unit of input 1 can be substituted by 2/3 of input 2 to produce the same quantity of output. Intuitively, a producer would optimally use only one output to produce. Suppose the production plan is $(z_1,z_2)$. By choosing $(z_1-1,z_2+2/3)$, the firm produces the same ...