\fIsocost lines = combinations of inputs that give the same ISOCOST LINES cost (slope = relative price of 10 inputs) Cost above $80 Point Number of Coal required Total We can derive it from the cost workers (tonnes) cost (E) 8 Wage E10, cost of coal E20 per tonne equation by re-arranging it: Tonnes of coal 2 w 80 P2 6 P 30 R = W Q 3 150 UT Q2 5 un 150 A For the isocost line running W through points P, and P2: N Slope of isocost lines is The vertical intercept = P , W 10 Cost = $40 Cost = 180 Cost = f120 Cost = f150 p 20 f80/f20 = 4 tonnes of coal & H the horizontal intercept = 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 f80/ f10 =8 workers. Number of workers The firm will choose the least-cost technology coreecon