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(c) Draw a second budget line such that to achieve A, the principal utilizes too many computers. Why might a principal makes this choice? What

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(c) Draw a second budget line such that to achieve A, the principal utilizes too many computers. Why might a principal makes this choice? What types of policies might encourage a more efficient use of resources?1. Consider a principal who chooses the optimal combination of teachers and computers by solving the following problem: Illl'igipT K T+pg 3: C1 subject to: f[T,C] E all where teachers [T] cost pr and computers [(3] cost pg. Teachers and computers jointly produce achievement {.4} according to A = 1" {T1 0']. [a] On the graph below is an isoquant the shows all the combinations of T and C that produce achievement level xi. If p;- : pg draw the budget line that yields the optimal combination of T and G. Teachers 1 5 1D 5 1D 15 Computers [b] Assuming that the principal is optimally choosing T and 0, what type of policy is needed to improve achievement

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