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1. (Spring, 2010 - UC Davis) A deli specializes in making grilled cheese sandwiches. Each sandwich requires two slices of bread and one slice of
1. (Spring, 2010 - UC Davis) A deli specializes in making grilled cheese sandwiches. Each sandwich requires two slices of bread and one slice of cheese. While the deli can make fractions of sandwiches, it must always follow this fixed proportion of bread to cheese. For example, the deli could make half a grilled cheese sandwich by using one slice of bread and half a slice of cheese. a. Write down the deli's production function for sandwiches as a function of the number of slices of bread (B) and the number of slices of cheese (C') used. Click for solution. b. Sketch the isoquants corresponding to 10 sandwiches and 20 sandwiches on a graph with B on the horizontal axis and C' on the vertical axis. Click for solution. c. Derive an expression for costs as a function the number of sandwiches produced (S) assuming that the firm chooses its input levels to minimize total costs. Click for solution
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