I need help with this homework problem. For the problem in the picture: i)derive the Total Cost Function, TC(q) ii) draw the Isoquant for the given level of output iii) draw the Isocost associated with the minimum Total Cost of producing the given amount of output, iv) identify the cost minimizing amount of Labor and Capital (L* and K*), v) determine whether the production function exhibits increasing, constant, or decreasing returns to scale v) label your graph carefully and accurately.
I need help with this homework problem. For the problem in the picture: i)derive the Total Cost Function, TC(q) ii) draw the Isoquant for the given level of output iii) draw the Isocost associated with the minimum Total Cost of producing the given amount of output, iv) identify the cost minimizing amount of Labor and Capital (L* and K*), v) determine whether the production function exhibits increasing, constant, or decreasing returns to scale v) label your graph carefully and accurately.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need help with this homework problem. For the problem in the picture:
i)derive the Total Cost Function, TC(q)
ii) draw the Isoquant for the given level of output
iii) draw the Isocost associated with the minimum Total Cost of producing the given amount of
output,
iv) identify the cost minimizing amount of Labor and Capital (L* and K*),
v) determine whether the production function exhibits increasing, constant, or decreasing returns
to scale
v) label your graph carefully and accurately.
Transcribed Image Text:A.
●
●
Production Function: q = 4*MIN(L, 3K)
Input prices: w = $8, r = $24
9=12
Draw your graph in this space:
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