Question 1) This Figure shows the isocost line corresponding to the total cost of production of $16,000 when capital and labour are employed. K 160 140 120 100 80 60 40 20 0 0 50 100 125 150 200 250 L a) What is the per-unit cost of capital? b) what is the per-unit cost of labour? c) Suppose the per-unit cost of capital decreases to 50. At what level of capital does the new isocost intersect the Y-axis?

Question 1) This Figure shows the isocost line corresponding to the total cost of production of $16,000 when capital and labour are employed. K 160 140 120 100 80 60 40 20 0 0 50 100 125 150 200 250 L a) What is the per-unit cost of capital? b) what is the per-unit cost of labour? c) Suppose the per-unit cost of capital decreases to 50. At what level of capital does the new isocost intersect the Y-axis?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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