Business, 25.11.2019 22:31, SamaraP

Suppose that the wage is $2 per hour and that capital also rents for $2 per hour. the slope of the isocost line is then equal to negative 11. using resulting slope value along with the above formula for the isoquant slope, compute the firm's optimal input ratio at any cost-minimizing point (recall that the isoquant and isocost slopes are equal at a tangency point). this ratio is 11 (enter a single integer). now suppose that the firm wants to produce one widget (q = 1). using your previous result on the optimal input ratio, you can compute the input levels that the firm uses to produce this output. these levels are k = 11 and l = 11. the cost of this input bundle is $44, which gives c(1) (the cost function c(q) evaluated at q=1).

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Suppose that the wage is $2 per hour and that capital also rents for $2 per hour. the slope of the i...