2. Trapper Joe, the fur trader, has found that his production function in acquiring pelts is given by q = 2pH where q =the number of pelts acquired in a day, and H =the number of hours Joeís employees spend hunting and trapping in one day. Joe pays his employees $8 an hour. a) Calculate Joeís total and average cost curves (as a function of q). b) What is Joeís total cost for the day if he acquires four pelts? Six pelts? Eight pelts? What is Joeís average cost per pelt for the day if he acquires four pelts? Six pelts? Eight pelts? c) Graph the cost curves from part a and indicate the points from part b.

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.