9. FSU is using 20 acres of land and 70 tons of cement to produce 1000 additional parking spaces. Land costs $4500 per acre and cement costs $15 per ton. For the input quantities currently being employed, marginal product of land and cement is given by MPL = 60 and MPC = 6. Show this situation in an isoquant-isocost diagram. Can FSU produce these parking spaces at a lower cost? Explain and show on your diagram.
9. FSU is using 20 acres of land and 70 tons of cement to produce 1000 additional parking spaces. Land costs $4500 per acre and cement costs $15 per ton. For the input quantities currently being employed, marginal product of land and cement is given by MPL = 60 and MPC = 6. Show this situation in an isoquant-isocost diagram. Can FSU produce these parking spaces at a lower cost? Explain and show on your diagram.
Chapter3: Functions
Section3.3: Rates Of Change And Behavior Of Graphs
Problem 3SE: How are the absolute maximum and minimum similar to and different from the local extrema?
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Transcribed Image Text:9. FSU is using 20 acres of land and 70 tons of cement to produce 1000 additional
parking spaces. Land costs $4500 per acre and cement costs $15 per ton. For the
input quantities currently being employed, marginal product of land and cement
is given by MPL = 60 and MPc = 6. Show this situation in an isoquant-isocost
diagram. Can FSU produce these parking spaces at a lower cost? Explain and
show on your diagram.
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