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3. Consider the following production function (Isoquant) IC= Q2 LK and values w=P =$15, r=Px =$8 LABOUR L e) Find the slope of the
3. Consider the following production function (Isoquant) IC= Q2 LK and values w=P =$15, r=Px =$8 LABOUR L e) Find the slope of the Isocost curve below. f) Set up a Cost Minimization problem and find L" (L in figure below) and K* (Q in figure below) for an IQ Q (Isoquant level) = 210,000 Figure Producers' Equilibrium R E the F IQ, -IQ, IQ CAPITAL
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To find the slope of the Isocost curve we use the formula Slope of Isocost curve w r Given values w ...
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
