MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Question
Chapter 12.A, Problem 2QE
(a)
To determine
Graphically illustrate the isocost curve and the impact when the production budget doubles.
(b)
To determine
Determine the changes in isocost curve, when the cost of materials increases.
(c)
To determine
Determine the changes in isocost curve, when the cost of materials rises to $10 a unit.
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A firm pays $10 per unit of labor and $5 per unit of capital. make diagram of the isocost curves for production total cost of $100; total cost of $200; and total cost of $500.
24. A specific production process can be represented by the production function,
f(x1, x2) = (x 1/2 + x 1/3) 3.
A. How much x₁ could the firm give up if it wanted to use 1 extra unit of x2
and still wanted to produce an identical level of output?
B. Labeling everything and being precise, draw the isoquant corresponding to
q = 4.
= 9.
C. On the same graph, draw the isoquant corresponding to q
D. Between the isoquants you just drew, does the production technology
display decreasing, increasing, or constant returns to scale?
E. Analytically determine whether the production process has global returns to
scale that match your local results from part D. Recall that in order to claim
global returns to scale, your result must hold for ALL possible values of x1
and x2.
Present a graph of the following. Label your graphs completely1. Using the isoquant map and isocost, show that combination M is the optimum combination of inputs and not combinations E and L.
Chapter 12 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 12.1 - Prob. 1QCh. 12.1 - Prob. 2QCh. 12.1 - Prob. 3QCh. 12.1 - Prob. 4QCh. 12.1 - Prob. 5QCh. 12.1 - Prob. 6QCh. 12.1 - Prob. 7QCh. 12.1 - Prob. 8QCh. 12.1 - Prob. 9QCh. 12.1 - Prob. 10Q
Ch. 12.A - Prob. 1QECh. 12.A - Prob. 2QECh. 12.A - Prob. 3QECh. 12.A - Prob. 4QECh. 12.A - Prob. 5QECh. 12.A - Prob. 6QECh. 12.A - Prob. 7QECh. 12 - Prob. 1QECh. 12 - Prob. 2QECh. 12 - Prob. 3QECh. 12 - Prob. 4QECh. 12 - Prob. 5QECh. 12 - Prob. 6QECh. 12 - Prob. 7QECh. 12 - Prob. 8QECh. 12 - Prob. 9QECh. 12 - Prob. 10QECh. 12 - Prob. 11QECh. 12 - Prob. 12QECh. 12 - Prob. 13QECh. 12 - Prob. 14QECh. 12 - Prob. 15QECh. 12 - Prob. 16QECh. 12 - Prob. 17QECh. 12 - Prob. 1QAPCh. 12 - Prob. 2QAPCh. 12 - Prob. 3QAPCh. 12 - Prob. 4QAPCh. 12 - Prob. 5QAPCh. 12 - Prob. 1IPCh. 12 - Prob. 2IPCh. 12 - Prob. 3IPCh. 12 - Prob. 4IPCh. 12 - Prob. 5IPCh. 12 - Prob. 6IP
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