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6. Using the production function Q=2KL. a. Fill the following tables with values of L and K. b. Graph the isoquants that show Q=36, Q=48
6. Using the production function Q=2KL. a. Fill the following tables with values of L and K. b. Graph the isoquants that show Q=36, Q=48 and Q= 96. c. If r=2, w=8 and TC= 34 then draw the isocost (name it TCo). Write an equation for this isocost. d. If r=5,w= 5 and TC=50 then draw the isocost (name it TC1 ). Write an equation for this isocost. e. If r=5,w=10 and TC=50 then draw the isocost (name it TC2 ). Write an equation for this isocost. f. If r=5,w=4 and TC=50 then draw the isocost (name it TC3 ). Write an equation for this isocost. g. Which of these combinations of input prices and total costs minimizes the long run cost of Q=36 ? How do you know? h. At this combination of input prices and total costs, what is the Marginal Rate of Technical Substitution (MRTS)? How do you know? 6. Using the production function Q=2KL. a. Fill the following tables with values of L and K. b. Graph the isoquants that show Q=36, Q=48 and Q= 96. c. If r=2, w=8 and TC= 34 then draw the isocost (name it TCo). Write an equation for this isocost. d. If r=5,w= 5 and TC=50 then draw the isocost (name it TC1 ). Write an equation for this isocost. e. If r=5,w=10 and TC=50 then draw the isocost (name it TC2 ). Write an equation for this isocost. f. If r=5,w=4 and TC=50 then draw the isocost (name it TC3 ). Write an equation for this isocost. g. Which of these combinations of input prices and total costs minimizes the long run cost of Q=36 ? How do you know? h. At this combination of input prices and total costs, what is the Marginal Rate of Technical Substitution (MRTS)? How do you know
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