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Question: The following production grid shows the relationship between capital and labor inputs and the output that can be produced by a firm. Capital Labor

Question:

The following production grid shows the relationship betweencapitalandlaborinputs and the output that can be produced by a firm.

Capital
Labor 0 1 2 3 4 5 6 7 8 9
0 0 0 0 0 0 0 0 0 0 0
1 0 1 3 7 12 18 21 23 24 24
2 0 3 12 30 60 85 105 120 130 135
3 0 7 30 85 105 120 150 180 210 230
4 0 12 60 105 130 210 280 340 380 410
5 0 18 85 120 210 410 500 570 620 660
6 0 21 105 150 280 500 700 850 950 1000
7 0 23 120 180 340 570 850 1100 1300 1400
8 0 24 130 210 380 620 950 1300 1500 1600
9 0 24 135 230 410 660 1000 1400 1600 1700

(a)Based on this information use Excel Charts to set up an isoquant map with isoquants representing output levels of 12, 105, and 410 units of output.

(b) What is the nature and the meaning of the isoquant curves.

(c) Discuss how and why the slopes of isoquants in the isoquant map matter

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