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NEED to draw a new one You are given the following data: 240- Cost = C = $12,000.00 220- Q 200- w = $100.00 per
NEED to draw a new one
You are given the following data: 240- Cost = C = $12,000.00 220- Q 200- w = $100.00 per unit of labor 180- r = $100.00 per unit of capital 160- These data are used to construct the isocost line (C') in the diagram to the right. X 140- Capital, I 120- Suppose the wage increases to $200.00 but that the firm chooses to keep using the 100- same amount of labor and capital to produce 200 units of output. 80- Given this new set of factor prices (w' = $200.00, r=$100.00), how much have costs 60- A changed if the set of input choices remains at point A? $ 6000 . (Enter a numeric 40- response using a real number rounded to two decimal places.) 20- 9= 200 Use the line drawing tool to draw a new isocost line showing an increase in w to $200.00, given the firm chooses to keep using the same amount of labor and capital 0 20 40 60 80 100 120 140 160 180 200 220 240 Labor, L to produce 2 Carefully folk X That's incorrect. The cost of production at point A is now $18,000.00 (from an original cost of $12,000.00 plus an increase in cost of $6,000.00). Along isocost line C , the firm can purchase a maximum of 180 units of capital (from $18,000.00 divided by a price of $100.00) or a maximum of 90 units of labor (from $18,000.00 divided by a price of $200.00). The new isocost line has a slope of - 2 (from w' 200.00 100.00 OKStep by Step Solution
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