#7
HOMEWORK
I
An iso
a)
.
cost
-
price
relative
is
curve
a
combinations of factors input that have
the
capital
and
labour
the inputs
of
showing
curve
The
.
price
of one
changes
market cost
constant
to the relative
price
The slope
.
of the
of the iso cost line
-
other
.
The line
represents
doesn't
the
change
,
the slope changes
An iso quant
b)
curve
same about
is
output
of
2)
for
a)
4=6
6=3×1
:
6- 3×1
Xz
a
showing
graph
all
combinations of
of the various
two
inputs
that results
in the
MRTS
(L
,
k)
%
-
=
=
Y÷ik
=
Change
in
input ( labor) for
another input
Kapital )
2×2
t
2×2
=
6-3×4
=
on
.
by
lsoauant is calculated
plotted
concave line
a
3
Z
a-
-
15094 ant
-
I
curve
I
9
2
b)
*
Mp ,
Mpz
7¥
-
W 1=2
WE
,
Mwpi
4
Muth
MWPT
function
when 4=6
=
3×1
6=3
X1
use
,
=
,
.
only
Mw# =L
s
x,
and
Ois
-
optimal
amount
X,
will
find
be
2
=
W
X
l
,
t
Wzxz
2X
=
t 4X z
,
=
212) t UCO)
=
y
X 2=1
Y
IF 3k ,
t 2×2
a
short run
Production
3×1+2617
=
6
when
curve
-
•
3×1 t2
=
M
3
-
l
l
I
2
Tl
a
z
short run labor
requirement curve
-
z
I
F
72
Variable
W,
change
with
Wz
=
cost
(1) ( 4)
changes
=
fly) :X , W
Cly )
change
in
input
in
input
.
4
with
changes
I 2
=
=
W 2=4
I
=
X ,
Y
9
6
does not
cost
=
=
,
l
l
l
l
Xz
When
X
o
-
3
Fixed
when
•
-
,
=
2X
Ft Cvcy)
,
=
Ut 2X
I
X , =/
When X 1=2
-
•
e)
of
t 210 )
x,
=
>
z
=
,
t 2×2
(RTC
)
=L
Because
6
C
=3
ox ,
=
I
2
,
,
y
y
=
=
S
8
,
,
yes
Y
'
8
by
substituting
112=0 in
production
but
3)
f- (X , ,Xz )
d)
x
X
=
I
Xz
,
X
}
I
XL
=z
¥
=
z
}
Xz
,
Iso cost
,
-
curve
Iso cost
X , t 4×2
-
=
k
Isoauant
curve
Xl
b) 7172
4
=
C¥
¥
4
ty
=
"
#l
IC
=
X
4×2×1=4
,
=
,
Xz =/
cost
C)
(4) Cl ) fuel )
=
72=1
y
=
=
8
when
Yl
When
"2
X,
production
Z
l
d)
=y2
X,
function
-
o
O
-
l
l
2
4
71
a
X,
labor
requirement
42
a
-
a
l
'
e
) Xz
f-
(
v
CHI
=
=
Cy )
=
l
>
"
Z
I
472
=
F
WIX
t
4cL )
=
,
=
=
4
171
Cvcy)
=
4 t X,
=
let y
2
X ,
X ,
=
=
4
I
,
,
y
Y
e
=
z
I