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5.(10 points) Henry uses a furnace and fuel to produce heat. The fumace can use EITHER coal (L) or wood (K) to produce heat. 1

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5.(10 points) Henry uses a furnace and fuel to produce heat. The fumace can use EITHER coal (L) or wood (K) to produce heat. 1 unit of coal produces 5 units of heat and 1 unit of wood produces 2 units of heat. a) Draw the isoquants for Q=20 and Q-40 units of heat (use the graph below). b) What is the MRTS.x? What does this tell you about the two inputs? Capitat wood) Pablem 5 Tabor (Cool)

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