This Figure shows the isocost line corresponding to the total cost of production of $16,000 when capital and labor are employed.

A) What is the per-unit cost of capital?

B) what is the per-unit cost of labor?

C) Suppose the per-unit cost of capital decreases to 50. At what level of capital does the new isocost intersect the Y-axis? 

 

K 160 140 120 100- 80 60 40 660 200 20 0 0 50 50 100 125 150 200 250 L