Based on production function Q (L, K) = L0.5K0.5, Output-10 abour Capital Labour Capital Labour Capital Output=20 Output-24 4 4 4 64 20 5| 10 6,25 16 64 16 16 20 64 6,25 64 4 4 Complete the following table and draw isoquants for three putput level. fr=$2/ hr and w=$12.5/hr, draw three isocost lines when cost is 550, $100 and $150 What is optimal combination of labour and capital for an output evel of 10? What is the cost?
Based on production function Q (L, K) = L0.5K0.5, Output-10 abour Capital Labour Capital Labour Capital Output=20 Output-24 4 4 4 64 20 5| 10 6,25 16 64 16 16 20 64 6,25 64 4 4 Complete the following table and draw isoquants for three putput level. fr=$2/ hr and w=$12.5/hr, draw three isocost lines when cost is 550, $100 and $150 What is optimal combination of labour and capital for an output evel of 10? What is the cost?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:Exercise 4
Based on production function Q (L, K) = L0.5K0.5,
Output=20
Labour Capital Labour Capital Labour Capital
Output-10
Output-24
4
4
4
64
20
6,25
64
16
16
64
10
16
20
6,25
64
4
Complete the following table and draw isoquants for three
output level.
If r=$2/ hr and w=$12.5/hr, draw three isocost lines when cost is
$50, $100 and $150
What is optimal combination of labour and capital for an output
level of 10? What is the cost?
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