5

3. Suppose that labor costs 20 dollars per unit and capital costs 40 dollars per unit. On the graph below, draw the graph for four isocost curves. Let the first isocost curve be equal to 200 dollars at all points, the second isocost curve be equal to 400 dollars at all point, the third isocost curve be equal to 600 dollars at all points, and the fourth isocost curve be equal to 800 dollars at all points. Label these isocost curves C1, C2, C3, and C4, respectively. a. Put the end points on each of the isocost curves that you have drawn above. b. What is the slope of each isocost curve?