A large architectural firm has just landed a contract to build a hospital. Seven architects currently work 40 hours per week in this​ firm, and all are available to work​ full-time on this project. The managers estimate that they need 400 ​architect-hours per week for 20 weeks to complete this project. Architects earn ​$500 per 40​-hour week. Suppose that there is a fixed cost of hiring an architect of ​$2,000. ​(This cost reflects the advertising​ costs, interviewing​ costs, and so​ forth.) Part 2 The​ firm's current architects are willing to work overtime to complete this project if they receive 1.5 times their usual wage rate for any hours in excess of 40 hours per week.   In this​ situation, the total overtime wages the managers would pay for the project will be ​$enter your response her

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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.