40 30 20 10 12 10 200 100 59 10 O 250 As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the firm has a budget of $5000 to produce, what is the firm's optimum output Q=100 Isoquant 15 Q=250 Isoquant Q-200 Isoquant

40 30 20 10 12 10 200 100 59 10 O 250 As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the firm has a budget of $5000 to produce, what is the firm's optimum output Q=100 Isoquant 15 Q=250 Isoquant Q-200 Isoquant

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

K
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200
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250
Q=100 Isoquant
15
As a production process requires labor L and capital K, q = F (L, K).
The wage for a labor is $500, the cost for one capital is $250. If the
firm has a budget of $5000 to produce, what is the firm's optimum
output
Q=250 Iso quant
Q-200 Isoquant
L

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