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Using the information given in the table, draw the isoquant corresponding to an output level of 120. Starting from L=6 and K-1, how much extra capital is needed to keep output constant If the labor is reduced from L 6 to L-4? How much extra capital is needed to keep output constant if labor is reduced from L=4 to L-27

Using the information given in the table, draw the isoquant corresponding to an output level of 120. Starting from L=6 and K-1, how much extra capital is needed to keep output constant If the labor is reduced from L 6 to L-4? How much extra capital is needed to keep output constant if labor is reduced from L=4 to L-27

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 7E
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Using the information given in the table, draw the isoquant corresponding to an output level of 120. Starting from L=6 and K= 1, how much extra capital is needed to keep output constant If the labor is reduced from L=6 to L-4? How much extra capital is needed to keep output constant if labor is reduced from L=4 to L=2? K 1 2 3 4 5 6 1 50 70 L 3 2 4 5 6 70 85 100 110 120 95 110 120 130 135 85 110 125 135 145 150 100 120 135 150 160 165 110 130 170 175 145 160 150 165 175 180 120 135 Using the four-point curved line drawing tool, graph the firm's isoquant for an output level of 120. Label this 'q-120. Carefully follow the instructions above, and only draw the required object If labor is reduced from L=6 to L-4, then to keep output constant capital must increase by (Enter your response as a whole number) If labor is reduced from L=4 to L-2, then to keep output constant capital must change by (Enter your response as a whole number and include a minus sign if necessary) K. Capital 6 3 2- 1- L Labor C
Transcribed Image Text:Using the information given in the table, draw the isoquant corresponding to an output level of 120. Starting from L=6 and K= 1, how much extra capital is needed to keep output constant If the labor is reduced from L=6 to L-4? How much extra capital is needed to keep output constant if labor is reduced from L=4 to L=2? K 1 2 3 4 5 6 1 50 70 L 3 2 4 5 6 70 85 100 110 120 95 110 120 130 135 85 110 125 135 145 150 100 120 135 150 160 165 110 130 170 175 145 160 150 165 175 180 120 135 Using the four-point curved line drawing tool, graph the firm's isoquant for an output level of 120. Label this 'q-120. Carefully follow the instructions above, and only draw the required object If labor is reduced from L=6 to L-4, then to keep output constant capital must increase by (Enter your response as a whole number) If labor is reduced from L=4 to L-2, then to keep output constant capital must change by (Enter your response as a whole number and include a minus sign if necessary) K. Capital 6 3 2- 1- L Labor C
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