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(d) (2 Points) Draw an isoquant showing when labor and capital are perfect substi tutes in production. L (e) (2 Points) Draw an isoquant showing

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(d) (2 Points) Draw an isoquant showing when labor and capital are perfect substi tutes in production. L (e) (2 Points) Draw an isoquant showing when labor and capital are perfect com- plements in production. K10. Suppose the same sandwich company (from the previous question) faces a wage of W = $16 per unit of labor and a rental rate of R = $4 per unit of capital. (a) (3 Points) What is isocost line equation for some total cost 0'? (b) (3 Points) Graph and label the isocost line for the cost C = 512. Be sure to also label the values of both intercepts. K 11. Answer these questions about the same sandwich company from the previous two questions . (a) (6 Points) Set up the rm's cost-minimization Lagrangian equation when a = 64. (Note: You do NOT need to solve it!)

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