*1. Consider the production function presented in the table below:

a. If the firm decides to employ 6 units of capital and 1 worker, what is its output?

b. What other combinations of capital and labor could be used to produce the same level of output you found in (a)?

c. Plot the combinations you determined in (a)
and

(b) on a graph, with labor on the horizontal axis and capital on the vertical axis.
Connect the dots to form the production isoquant corresponding to 600 units of output.

Transcribed Image Text:

Labor (L) 0123456 1 100 200 300 400 500 600 Capital 2 2 200 400 (K) 3 300 600 800 1,000 1,200 600 900 1,200 1,500 1,800 4 400 800 1,200 1,600 2,000 2,400 5 500 1,000 1,500 2,000 2,500 3,000 6 600 1,200 1,800 2,400 3,000 3,600