Firm’s Equilibrium with Negatively Sloped Straight Line Isoquants
If the production function of the firm is such that it gives rise to negatively sloped straight line isoquants (IQs), then the question of equilibrium at the point of tangency does not arise, since two straight lines—the IQ and the ICL—cannot be tangent to each other, they can only cut or coincide. In this case, if the IQs are steeper [...]