Solutions to Chapter 7 Assignments
The technology is summarized by the production function. q = 5 KL. ... Illustrate this point on your graph and find the new cost. The new level of labor is 39.2. To find this, use the production function and substitute 140 in for output and 5 in for capital. The new cost is TC=$20*39.2+$80*5=$1184. ................
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