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Prunella raises peaches where Lis the number of units of labor she uses and T is the number of units of land she uses. Her output is f(L, T) = LT bushels of peaches. If the cost of land is 8 and the wage for labor is 4, what would be the slope of an iso-cost line, where total cost is $500. Tis on the vertical axis. Don't forget the negative sign! Write answer to 2 decimal places, e.g., 0.93

Prunella raises peaches where Lis the number of units of labor she uses and T is the number of units of land she uses. Her output is f(L, T) = LT bushels of peaches. If the cost of land is 8 and the wage for labor is 4, what would be the slope of an iso-cost line, where total cost is $500. Tis on the vertical axis. Don't forget the negative sign! Write answer to 2 decimal places, e.g., 0.93

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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Prunella raises peaches where L is the number of units of labor she uses and T is the number of units of land she uses. Her output is f(L,T) = LT bushels of peaches. If the cost of land is 8 and the wage for labor is 4, what would be the slope of an iso-cost line, where total cost is $500. Tis on the vertical axis. Don't forget the negative sign! Write answer to 2 decimal places, e.g., 0.93
Transcribed Image Text:Prunella raises peaches where L is the number of units of labor she uses and T is the number of units of land she uses. Her output is f(L,T) = LT bushels of peaches. If the cost of land is 8 and the wage for labor is 4, what would be the slope of an iso-cost line, where total cost is $500. Tis on the vertical axis. Don't forget the negative sign! Write answer to 2 decimal places, e.g., 0.93
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