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Rose's Roses is a local flower shop specializing in rose bouquets for weddings. Rose can produce her magnificent bouquets using roses imported from Colombia or
Rose's Roses is a local flower shop specializing in rose bouquets for weddings. Rose can produce her magnificent bouquets using roses imported from Colombia or roses imported from Ecuador. Due to altitude and Ecuador's location on the equator, the Ecuadorian roses are slightly larger, meaning Rose needs fewer of them to produce each bouquet. Rose produces her bouquets according to the following production function:
Q=0.05RC+0.2RE
where Q is the quantity of bouquets produced and
RC
and RE
are the quantities of Colombian roses and Ecuadorian roses used, respectively. The price of a Colombian rose is PC=$0.45,
and the price of an Ecuadorian rose is PE=$0.45.
Part 2
Referring to the production function given above, the slope of the isoquant line, enter your response here.
dREdRC,
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