Problem
Draw an isocost curve for a firm that has $100 to spend on producing jeans. Input includes labor and materials. Labor costs $8 and materials cost $4 a unit. How does each of the following affect the isocost curve? Show your answer graphically.
a. Production budget doubles.
b. Cost of materials rises to $10 a unit.
c. Cost of labor and materials each rises by 25 percent.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.