up to application three. Included are the characteristics of isoquants and applications 1 and 2 of producer equilibrium.

To prepare do the question that I left with you, that is given the production function, TP= 2KL, PK =$2, and PL =$5, what is the maximum TP that you can produce given your budget of $17.31. How much K and L would be required?

Also, do the following: You are a consultant. Given TP=4KL and the price of K $ 10 and labor $5, what is the maximum you can produce with a budget of $180? what combination of K and L would you recommend?