ONLY answer question b. relative to question a. Consider the production function f (L, K) = 10(L + 3K)Draw the isoquant qo =600, being careful to mark all the relevant coordinates and axis labels.а. b. If input prices are w = 40 and r =600 at the lowest cost. Draw the isocost line that goes through that point, adding it to the graph above.10, find the combination of inputs that will allow the firm to produce qo

We have input price ratio = w/r = 40/10 = 4 and required to produce q =600 units

b. If input prices are w = 40 and r = 10, find the combination of inputs that will allow the firm to produce qo 600 at the lowest cost. Draw the isocost line that goes through that point, adding it to the graph above. %3D

b. If input prices are w = 40 and r = 10, find the combination of inputs that will allow the firm to produce qo 600 at the lowest cost. Draw the isocost line that goes through that point, adding it to the graph above. %3D

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section8.4: Costs Of Production: Total, Average, Marginal

Problem 1ST

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Question

ONLY answer question b. relative to question a.

Consider the production function f (L, K) = 10(L + 3K)
Draw the isoquant qo =
600, being careful to mark all the relevant coordinates and axis labels.
а.

b. If input prices are w = 40 and r =
600 at the lowest cost. Draw the isocost line that goes through that point, adding it to the graph above.
10, find the combination of inputs that will allow the firm to produce qo

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