Draw the isocost line starting

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Assignment-06 Suppose that a manufacturer has a budget of $900 and wants to produce 50,000 units of pens.

The table below illustrates the combination of both Capital and Labor to produce such quantity.

Option
Capital
Labor
A
10
2
B
7
3
C
5
4
D
3
5
E
2
6
F
1
8

Each unit of Capital of costs $100

Each of unit of labor costs $60

1- Draw the Isocost line starting using the given budget (Capital on the Y-axis, Labor on the X-axis).

2- Draw the isoquant line to represents the combination of capital and labor.

3- What is the tangency point that enable the manufacturer to produce the required quantity at the lowest cost possible?

Reference no: EM133124303

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