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Write down an isocost equation if rent of capital is $30 and wage rate is $20. So in a curve if capital rent decreases to $10.A company has a…

by | Nov 29, 2023 | economics

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1.Write down an isocost equation if rent of capital is $30 and wage rate is $20. So in a curve if capital rent decreases to $10.2.A company has a production functionQ = 5 K0.25 L0.75 Capital rent per hour, r= $50 and labor wage per hour, w= $10. Total invest of the company is $ 100, 000.i.Construct isocost equationii.MPL and MPK and MRTS iii.Find K* and L* and Q*

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