QuesLIUII 41 ( LU PUIIILS) The owner and manager of Johnson's Wheat farm, Reggie Johnson, regularly revisits his decision regarding the mix of labor and capital to be used in harvesting every week based on his budget. Reggie has determined that based on his current weekly budget, if he allows his harvesting operations to be completely automated, the maximum number of machine hours he can afford is 60 based on a rental rate of capital of $50. Likewise, if he decides to pursue a labor-intensive harvesting approach, hiring only physical labor, the maximum number of labor hours he can afford to hire is 80. a) Using the data indicated above, determine the price of labor, and provide a specific equation which represents the isocost equation for Johnson's Wheat farm. Show all working to derive final answer. b) Reggie is considering a mix of inputs for this week where L = 40 and K = 30. Based on your answer to part (a), can Reggie afford this input bundle? Justify your answer using mathematical calculations of the total cost of this input bundle. c) How do things change for Reggie if his budget this week doubles? To answer this question, provide a new isocost equation assuming that the wage and rental rate of capital has not changed. d) Rewrite the isocost equations from parts (a) and (c) in the form of the general equation of a line y = mx+b. Using a scatterplot, graph Reggie's original isocost and his new isocost when his harvesting budget doubled with capital on the y-axis and labor on the x-axis. Be sure to label your axes, indicate the x and y intercepts and the slope of the isocost lines. Upload your graph using the attachment tool. Provide a comparison of the slopes of the two isocost lines