Question
Assume there is a linear isoquant where the input combinationK = 10, L = 0 produces Q = 100. Assume that this isoquant has a
Assume there is a linear isoquant where the input combinationK = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up - unit of K. Assume PL= $1 and PK = $1.
What is the smallest total cost necessary to produce Q = 100?
a. $20
b. $10
c. $50
d. $100
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The Business of Tourism Management
Authors: John Beech, Simon Chadwick
1st edition
273688013, 273688014, 9781405871631 , 978-0273688013
