The production theory in the long run

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The Production Theory in the long run.

a. Draw the isocost line corresponding to a total cost of $10,000 is: 50 L + 100 K. TC = w L + r K, where L is the quantity of labour, K is the quantity of capital, w is the price of labour, and r is the price of capital. And draw the isoquant curve on the same diagram when the output is Y1.

b. What are the conditions for cost-minimizing inputs to produce an output Y1?

c. Draw is the cost line when the price of capital increases to 200.

Reference no: EM13772289

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