The Red Racer Company and the Blue Bomber Company are each capable of minimizing cost and producing 4,000 bicycles per month. Red Racer’s factory is located in an area where the cost of labor is significantly less and the cost of capital is significantly more than the costs of labor and capital for Blue Bomber. Assume that each company has access to the same technology to produce bicycles and draw an isoquant/isocost diagram to illustrate why the cost-minimizing combinations of inputs for these companies are different. Be sure to identify the isocost line, amount of capital, amount of labor, and cost-minimizing combination of inputs for each company.