Question: Draw an isoquant-isocost line graph to illustrate the following situation: Jill Johnson can rent pizza ovens for $2,000 per week and hire workers for $1,000
Draw an isoquant-isocost line graph to illustrate the following situation: Jill Johnson can rent pizza ovens for $2,000 per week and hire workers for $1,000 per week. She can minimize the cost of producing 20,000 pizzas per week by using 5 ovens and 10 workers, at a total cost of $20,000. She can minimize the cost of producing 45,000 pizzas per week by using 10 ovens and 20 workers, at a total cost of $40,000. She can minimize the cost of producing 60,000 pizzas per week by using 15 ovens and 30 workers, at a total cost of $60,000. Draw Jill's long-run average cost curve and discuss its economies of scale and diseconomies of scale.
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