Write down isocost equation if rent of capital is given, Microeconomics

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Write down isocost equation if rent of capital is given

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 function

Q = 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 equation

ii.MPL and MPK and MRTS

iii.Find K* and L* and Q*

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Microeconomics: Write down isocost equation if rent of capital is given

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Microeconomics: Write down isocost equation if rent of capital is given

Reference No:- TGS070883

Have a Question? (oR Write a Review)

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Microeconomics: Write down isocost equation if rent of capital is given

Reference No:- TGS070883

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