5. Use the following graph to answer the following questions. Briefly explain the reason why you chose a specific point. Capital (machines per week) 20 16 10 C B 16 Q = 14,000 Q = 6,000 30 Labor (Workers per week) 5.1 If the wage rate and the rental price of machines are both $50 and total cost is $800, is the cost-minimizing point A, B, or C? 5.2 If the wage rate is $40, the rental price of equipment is $120, and total cost is $1,200, is the cost-minimizing point A, B, or C? 5.3 If the wage rate is $60, the rental price of equipment is $90, and total cost is $1,800, is the cost-minimizing point A, B, or C?

5. Use the following graph to answer the following questions. Briefly explain the reason why you chose a specific point. Capital (machines per week) 20 16 10 C B 16 Q = 14,000 Q = 6,000 30 Labor (Workers per week) 5.1 If the wage rate and the rental price of machines are both $50 and total cost is $800, is the cost-minimizing point A, B, or C? 5.2 If the wage rate is $40, the rental price of equipment is $120, and total cost is $1,200, is the cost-minimizing point A, B, or C? 5.3 If the wage rate is $60, the rental price of equipment is $90, and total cost is $1,800, is the cost-minimizing point A, B, or C?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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