I just need the answer for D please. In details a. Compute ine totai coSI Tor eacn proaucuon metnoa ana TIIL IN the tabie.80-Units ofCapitalProductionUnits ofTotalMethodLabourCost75A12021S 48670B10026$ 45665608034S 444556044S 444504056$ 4568 45F2071$ 48640-b. Which production method minimizes costs for producing 500 tires? (Select all that apply.)35-Ở 30-O Production method B25-O Production method F20-15O Production method E10IsodostY Production method DO Production method A0-12080100Quantity of LabourV Production method C204060140c. Plot the isoquant for 500 tires. Given the factor prices, draw the isocost line that corresponds to the cost-minimizingproduction method.1.) Using the multipoint drawing tool, plot and label the isoquant.2.) Using the line drawing tool, plot and label the isocost line.Carefully follow the instructions above, and only draw the required objects.d. Now suppose the price of labour rises to $5 per unit, but the fim still wants to produce 500 tires per day. Explain how acost-minimizing firm adjusts to this change (with no change in technology).A cost-minimizing firm will be producing on a parallelisocost line. The fim will use morelabour and lessv capital and produce on a higher point on the same visoquant curve.Quantity of Capital

An isoquant is the equal quantity curve that shows the combination of two inputs yields the same…

d. Now suppose the price of labour rises to $5 per unit, but the firm still wants to produce 500 tires per day. Explain how a cost-minimizing firm adjusts to this change (with no change in technology). A cost-minimizing firm will be producing on a parallel isocost line. The fim will use more labour and less v capital and produce on a higher point on the same v isoquant curve.

d. Now suppose the price of labour rises to $5 per unit, but the firm still wants to produce 500 tires per day. Explain how a cost-minimizing firm adjusts to this change (with no change in technology). A cost-minimizing firm will be producing on a parallel isocost line. The fim will use more labour and less v capital and produce on a higher point on the same v isoquant curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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