Illustrate the shop-s initial optimal combination of capital


A local hamburger shop uses capital and labour to produce quality hamburgers. Assume the shop's production isoquant is convex to the origin. Assume that the cost of labour is $30 per hour and the cost of capital is $60 per hour.

On a diagram illustrate the shop's initial optimal combination of capital and labour needed to produce hamburgers. You do not need give actual quantities of capital and labour in the answer. Make sure you label your diagram carefully.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Illustrate the shop-s initial optimal combination of capital
Reference No:- TGS063160

Expected delivery within 24 Hours