Identify combination of workers and capital that will be use

Assignment Help Macroeconomics

Reference no: EM13233565

assume that the firm is currently producing 6 units of output at point B on isoquant IQ6. Suppose now that the firm plans to expand output to 9 units by hiring more workers while continuing to use K2 units of capital (capital is assumed to be a fixed input in the short run).

1) Identify the combination of workers and capital that will be used.

2) Is the total cost of producing 9 units of output in this way greater than, less than, or same as the cost at point C? Support your answer by showing what has happened using LAC and SAC curves.

Reference no: EM13233565

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