3. The wage rate is £10 and the capital rate is £20. If a firm was spending £c, show what combinations of labour and capital are possible in an equation. Represent the combinations possible if the firm spent £200, £400, or £600 in a suitably labelled graph. A firm has technology such that it can produce... q = L+ K What name do we give to this production function? b. Assume output q = 30. Draw the isoquant in a suitably labelled graph. 4. а. 5. Assuming the same wages and technology as before - how much does it cost the firm to produce q = 30? How much labour does it employ? How much capital?

3. The wage rate is £10 and the capital rate is £20. If a firm was spending £c, show what combinations of labour and capital are possible in an equation. Represent the combinations possible if the firm spent £200, £400, or £600 in a suitably labelled graph. A firm has technology such that it can produce... q = L+ K What name do we give to this production function? b. Assume output q = 30. Draw the isoquant in a suitably labelled graph. 4. а. 5. Assuming the same wages and technology as before - how much does it cost the firm to produce q = 30? How much labour does it employ? How much capital?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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