Why can two isoquants not cros (c) Suppose that w=$300 and r=$600. On a suitable diagram, draw the isocost for C =$18,000. Show how the isocost line you have drawn would change if the government acted to reduce the costs associated with hiring labour. What effect would you expect the government policy to have on employment? Explain fully, referring to your diagram. s? Illustrate your answer with a suitable diagram