could you please answer with pen and paper ? 17. For a certain good the production function is given by the equation q = q²qc, where q is theproduced output in units of 1000 and q and qc are the number of units of labour and of capitalinvested in the production process. Assume that one unit of labour costs 10 units of money and oneunit of capital costs 5 units of money.(a) Show on a graph which combinations (q, qc) generate exactly 64 000 units of output. Put qLon the horizontal axis of the graph and qc on the vertical axis.(b) Explain how one can see on the graph of part a which combinations (qL, qc) allow to produce64 000 units using a budget of exactly 100 units of money.(c) Explain how one can see on the graph of part a which combinations (qL, qc) allow to produce64 000 units in the cheapest possible way.

Given production function q=L2C Output=64000 W=10 r=5 q--- output L-- labor units C-- capital units…

17. For a certain good the production function is given by the equation q =q²qc, where q is the produced output in units of 1000 and qz and qc are the number of units of labour and of capital invested in the production process. Assume that one unit of labour costs 10 units of money and one unit of capital costs 5 units of money. (a) Show on a graph which combinations (qL, qc) generate exactly 64 000 units of output. Put qL on the horizontal axis of the graph and qc on the vertical axis. (b) Explain how one can see on the graph of part a which combinations (qL, 9c) allow to produce 64 000 units using a budget of exactly 100 units of money. (c) Explain how one can see on the graph of part a which combinations (qL, qc) allow to produce

17. For a certain good the production function is given by the equation q =q²qc, where q is the produced output in units of 1000 and qz and qc are the number of units of labour and of capital invested in the production process. Assume that one unit of labour costs 10 units of money and one unit of capital costs 5 units of money. (a) Show on a graph which combinations (qL, qc) generate exactly 64 000 units of output. Put qL on the horizontal axis of the graph and qc on the vertical axis. (b) Explain how one can see on the graph of part a which combinations (qL, 9c) allow to produce 64 000 units using a budget of exactly 100 units of money. (c) Explain how one can see on the graph of part a which combinations (qL, qc) allow to produce

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.9P

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