Twixflix is an online platform that produces food travel documentaries. To produce one episode, one presenter (a worker ) must stand in front of one camera (capital ). If there are many people presenting, or if multiple cameras are used to shoot the same presenter, only one episode will be produced, so the production function is =min {,}, where is the number of episodes produced, the amount of cameras used and the amount of presenters hired.

a) What is an isoquant? Draw a few isoquants that correspond to the production function for episodes of travel food documentaries.

b) Does the production function display increasing returns to scale?

c) Twixflix wishes to produce 20 episodes. The rental cost of a camera is 150 and presenters are paid 300 per episode. How many cameras and presenters will the company demand? Show the optimal bundle on your diagram. What is the cost associated with producing 20 episodes?

d) The pandemic made Twixflix operations harder and raised the cost of producing an episode. Twixflix had committed to buying 100 cameras (a fixed cost) and their total short-run cost became ()=1500+3002. Draw the short-run marginal cost, average variable cost and average total cost curves for Twixflix. What is the minimum price at which Twixflix would produce an episode?