Suppose that the production function is Q = 45K+30L. The price of Labour is $10 and the price of Capital is $20.?

Posted on 2016-11-17 18:48:00 in Economics by YUANS

a)On the graph, illustrate and label the isoquant for 6750 units of output. 

b)What is the marginal rate of technical substitution for this production function? Explain what your answer means. 
c)Draw in the cost minimizing isocost for 6750 units of output. What is the cost minimizing quantity of labour and capital needed to produce 6750 units of output? 
Labour = ____________, Capital = ________________ 

d)What is the total cost of producing 6750 units of output?_________________________________...

---

Answer Comment

No Answers Posted Yet.