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The roasting stage requires the use of roasting machines and skilled workers. The production function illustrating the state of technology for roasting coffee beans is
The roasting stage requires the use of roasting machines and skilled workers. The production function illustrating the state of technology for roasting coffee beans is given by: = 100 Where S is hours of skilled labor and K is the hours of the rented roasting machines. g) Illustrate the isoquant for this production function for Q = 100 by placing S on the horizontal axis and K on the vertical axis. h) What is the MRTSS,K? i) If the wage of a skilled worker is $24 per hour and rental cost of the roasting machines is $.24 per hour, what is the cost-minimizing choice of workers and machine for Q = 100? Support your answer by including the lowest isocost on the graph of part g). j) Derive a cost function as a function of Q for the roasting stage
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