19. A moving company requires one van and two workers in one hour to do one task. If labour cost is $20/hour per worker and renting a van costs $40/hour. What is the total cost of cost- minimizing input combination if the company wishes to do 20 tasks? Depict the scale and substitution effects if the wage decreases to $15/hour if the total cost does not change.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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19. A moving company requires one van and two workers in one hour to do one task. If labour
cost is $20/hour per worker and renting a van costs $40/hour. What is the total cost of cost-
minimizing input combination if the company wishes to do 20 tasks? Depict the scale and
substitution effects if the wage decreases to $15/hour if the total cost does not change.
Transcribed Image Text:19. A moving company requires one van and two workers in one hour to do one task. If labour cost is $20/hour per worker and renting a van costs $40/hour. What is the total cost of cost- minimizing input combination if the company wishes to do 20 tasks? Depict the scale and substitution effects if the wage decreases to $15/hour if the total cost does not change.
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