Both capital and labor are variable inputs. Suppose the wage rate of labor is 16 (per hour) and therental price of capital is 20 (per hour). The downward sloping smooth curves that bend in towardsthe origin are a firm's isoquants. The downward sloping straight lines are isocost lines. If the fermplans to produce 20 units of output lper hour), its minimized cost isCapitalslope=-0.8(6,5.5)(4,5)(2,3)q=30q=20q=10LaborO 180O 160O 164O 122

Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Both capital and labor are variable inputs. Suppose the wage rate of labor is 16 (per hour) and the rental price of capital is 20 iper hourd The dovmward skoping smooth curves that bend in towards the origin are a firm's isoquants. The downuard skoping straight lines are isocest lines. If the firm plans to produce 20 units of output ber hour, its minimized cost is Capital slope=-0.8 (6,5.5) (4,5) (2,3) q=30 q=20 q=10 Labor O 180 O 160 O 164 O 122