Capital (K) produce 800 units of output. Answer the following questions: In the accompanying figure, capital costs $225 per unit. The manager wants to 600 A 500 400 300 200 100 0 B ps The price of labor is $ with input combination A is $ E 0 --- Q = 800 900 Labor (L) per unit. The total cost of producing 800 units usage and s) By moving from A to B, the manager, (decreases, increases) capital usage. (decreases, increases) labor The optimal input combination is units of labor and units of capital. The minimum total cost for which 800 units can be produced is $

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Capital (K)
produce 800 units of output. Answer the following questions:
In the accompanying figure, capital costs $225 per unit. The manager wants to
600
A
500
400
300
200
100
0
B
ps The price of labor is $
with input combination A is $
E
0
---
Q = 800
900
Labor (L)
per unit. The total cost of producing 800 units
usage and
s) By moving from A to B, the manager,
(decreases, increases) capital usage.
(decreases, increases) labor
The optimal input combination is
units of labor and
units of capital. The minimum total cost for which 800 units can be produced
is $
Transcribed Image Text:Capital (K) produce 800 units of output. Answer the following questions: In the accompanying figure, capital costs $225 per unit. The manager wants to 600 A 500 400 300 200 100 0 B ps The price of labor is $ with input combination A is $ E 0 --- Q = 800 900 Labor (L) per unit. The total cost of producing 800 units usage and s) By moving from A to B, the manager, (decreases, increases) capital usage. (decreases, increases) labor The optimal input combination is units of labor and units of capital. The minimum total cost for which 800 units can be produced is $
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