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Please see attached. I know A and B, I am looking for the answers to C-E. Thanks! Let a production function exist such that Q
Please see attached. I know A and B, I am looking for the answers to C-E. Thanks!
Let a production function exist such that Q = a) c) K 10 20 30 40 50 60 70 Let the firm have a total of Sl i 000 to spend on labor and capital Let price of labor equal $5 and the price of capital equals SIO Write out the total cost (isocost) equation Find the optimal usage of K and L and the optimal output of Q. (Keep K on the vertical axis and L on the horizontal). Calculate and plot the isoquant for the optimal Q found in b) given the values for K in the table below. Plot With the Isocost Show the optimal levels of K, and L that go with that optimal level of Q L Let total expenditures equal $1 , 100 in period 2 and Sl 200 in period 3_ d) Calculate the new optimal values of Q and the new isoquants and plot the LR Expansion Path. using data from d); keep K at 25, letting L vary, and plot the SR Expansion Path and the TPL curve.
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