וי 9:29 Here: ChatGPT > • 107 represents the total expenditure on labor (teachers), where I is the number of teachers. ⚫ 20B represents the total expenditure on capital (buildings/materials), where B is the amount of capital used. To rewrite the equation in terms of B: 200-107 B = 20 This equation shows all the combinations of I (teachers) and B (buildings/materials) that can be afforded with a budget of $200. Where do I get that the slope is 1/2 To find the slope of the isocost line, we rearrange the isocost equation into the slope-intercept form, where is the slope. Starting with: Solving for : + Message 4. What if the production function for education (E) is: E-1 B where T is teachers and B is buildings and materials. The cost of each teacher is $54, the material cost $144 per unit and the school has a budget of $5,000 (numbers are in,000, but this can be ignored) a. Construct the isocost equation. b. With a MP-0.6148 and MP-0.81 B2, determine the appropriate input mix to get the greatest output. Also, compute output. c. Explain what would happen in the short-run (keeping capital fixed) to the appropriate input mix if the budget where changed to $4,250. Would the input combination be different in the long-run? If so, how would it change? Explain.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 28CTQ: Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder...

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4. What if the production function for education (E) is: E=06 B0.8 , where T is teachers and B is buildings and materials. The cost of each teacher is $54, the material cost $144 per unit and the school has a budget of $5,000 (numbers are in ,000, but this can be ignored) a. Construct the isocost equation. b. With a MPT = 0.6T °4303 and MPs = 0.8T°6-02, determine the appropriate input mix to get the greatest output. Also, compute output. c. Explain what would happen in the short-run (keeping capital fixed) to the appropriate input mix if the budget where changed to $4,250. Would the input combination be different in the long-run? If so, how would it change? Explain.