Joe's coffee shop faces an isocost curve given by C=10L+5K where L is the number of employees and K is the number of coffee machines. If Joe's total budget is 100 and he has 5 employees, he can afford ___ machines. The slope of the isocost curve (with K on the y-axis) is ___. For each additional employee, to keep his costs the same, Joe has to give up ___ machines.

Joe's coffee shop faces an isocost curve given by C=10L+5K where L is the number of employees and K is the number of coffee machines. If Joe's total budget is 100 and he has 5 employees, he can afford _ machines. The slope of the isocost curve (with K on the y-axis) is _. For each additional employee, to keep his costs the same, Joe has to give up ___ machines.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 3SQ

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