Q1. The wage rate is £5 and the rental rate (cost) of capital is £2. Calculate the lowest cost method of making 4, 8 and 12 units of output. Explain the two methods of producing each level of output?
Q2. The graph of the demand curve and the supply curve for Belgium cocoa beans. From the supply and demand schedules, from Belgium what are the equilibrium price also quantity of cocoa beans?