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Q = f(H, K) = min(2K, H) (Firm Production Function) In other words, it needs two workers per truck. Below is a graph of its
Q = f(H, K) = min(2K, H) (Firm Production Function) In other words, it needs two workers per truck. Below is a graph of its isoquants. Reproduce it on your problem set. Recall that isoquant curves depict the combination of labor and capital that produce the same quantity. a. How much would Fedex produce if it had 2 workers and 1 truck? Label this point on the graph. (4 pts) b. How much would Fedex produce if it had 4 workers and 1 truck? Label this point on the graph. (4 pts) (2. How much would Fedex produce if it had 4 workers and 2 trucks? Label this point on the graph. (4 pts) (1. Would Fedex have greater prot with 2 workers and 1 truck or 4 workers and 1 truck? Explain your reasoning. (3 pts)
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