How coldwell banker can produce same output at lower cost

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Coldwell Banker is employing 10 acres of land and 50 tons of cement to produce 1,000 parking spaces. Land costs $4,000 per acre and cement costs $12 per ton. For the input quantities employed, MP L = 50 and MP C = 4. Show this situation in an isoquant-isocost diagram. Explain, and show in the diagram, how Coldwell Banker can produce the same output at a lower cost.

Reference no: EM13238553

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