If the current capital is fixed at 1,600 units, how much labor should the firmn employ in the short run? (e) How much profit will the firm earn?

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A: We will use the ‘Principle of marginal benefit and marginal cost here’. This simply says a firm…

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A:

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Q: What’s the the total fixed costs 8 10 12 Or 15

A: Total Fixed Cost = 15

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.