Question
how will a graph illustrate both technologies and 4 isocost curves, Cost A@P1 , Cost A@P2 , Cost B@P1 , and Cost B@P2 , Label
how will a graph illustrate both technologies and 4 isocost curves, CostA@P1, CostA@P2, CostB@P1, and CostB@P2, Label all axes, intercepts, and curves.
Technology | Number of workers | Tons of Coal | Total Cost | |
P1 | P2 | |||
A | 8 | 4 | 160 | 120 |
B | 2 | 6 | 140 | 80 |
Under the set of prices in the first period (P1), the daily wage is 10 and the price of a ton of coal is 20. Under the set of prices in the second period (P2), the daily wage is 10 and the price of a ton of coal is 10.
P1: Wage= 10; Coal= 20
(A) Total Cost= (8x10)+(4x20)= 80+80= 160
(B) Total Cost= (2x10)+(6x20)= 20+120= 140
P2: Wage= 10; Coal= 10
(A) Total Cost= (8x10)+(4x10)= 80+40= 120
(B) Total Cost= (2x10)+(6x10)= 20+60= 80
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