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    1. The document discusses cost minimization problems where machine workers are perfect substitutes and the isoquant curve is a straight line. 2. It provides an example where the cost minimizing quantities of capital (K) and labor (L) inputs are 10 units of K and 120 units of L with a total cost of 200. 3. It notes that if the price of capital falls below 20, the cost minimizing choice will be a corner solution with more capital and less labor.

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    1. The document discusses cost minimization problems where machine workers are perfect substitutes and the isoquant curve is a straight line. 2. It provides an example where the cost minimizing quantities of capital (K) and labor (L) inputs are 10 units of K and 120 units of L with a total cost of 200. 3. It notes that if the price of capital falls below 20, the cost minimizing choice will be a corner solution with more capital and less labor.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    2 views4 pages

    Hw3 Finished

    Uploaded by

    ching lam
    1. The document discusses cost minimization problems where machine workers are perfect substitutes and the isoquant curve is a straight line. 2. It provides an example where the cost minimizing quantities of capital (K) and labor (L) inputs are 10 units of K and 120 units of L with a total cost of 200. 3. It notes that if the price of capital falls below 20, the cost minimizing choice will be a corner solution with more capital and less labor.

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    © All Rights Reserved
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