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The Cost Minimizing Input Choice
- Assumptions
- R = depreciation rate + interest rate
- Question
* The Isocost Line
- C = wL + rK
- Isocost: A line which shows all the combinations of L & K which can be purchased for same cost
- Rewriting C as linear:
is the ratio of wage rate to rental cost of capital.
* This shows the rate at which capital can be substituted for labor with no change in cost.
sir i want critics of marris''s model , i have an assginment (write critics of marris''s model)
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Given the cost function as C=0.3Q3 -2Q2 + 13Q + 25, find the supply function.uestion..
what is iso curve
how does it work ? Say it to me !
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