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Imagine that the production function for tuna cans is given by q = 6K + 4L where q = Output of tuna cans per hour K = Capital input per hour L = Labor input per hour a. Assuming capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? To produce 100 per hour? b. Now assume that capital input is fixed at K = 8; what L is required to produce 60 tuna cans per hour? To produce 100 per hour? c. Graph the q = 60 and q = 100 isoquants. Indicate the points found in part a and part b. What is the RTS along the isoquants?

Imagine that the production function for tuna cans is given by q = 6K + 4L where q = Output of tuna cans per hour K = Capital input per hour L = Labor input per hour a. Assuming capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? To produce 100 per hour? b. Now assume that capital input is fixed at K = 8; what L is required to produce 60 tuna cans per hour? To produce 100 per hour? c. Graph the q = 60 and q = 100 isoquants. Indicate the points found in part a and part b. What is the RTS along the isoquants?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Imagine that the production function for tuna cans is given by

q = 6K + 4L

where

q = Output of tuna cans per hour

K = Capital input per hour

L = Labor input per hour

a. Assuming capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? To produce 100 per hour?

b. Now assume that capital input is fixed at K = 8; what L is required to produce 60 tuna cans per hour? To produce 100 per hour?

c. Graph the q = 60 and q = 100 isoquants. Indicate the points found in part a and part b. What is the RTS along the isoquants?

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