Problem
Suppose that in a given production process a blueprint (B) can be produced using either an hour of computer time (C) or 4 hours of a manual draftsman's time (D). (You may assume C and D are perfect substitutes. Thus, for example, the firm could also produce a blueprint using 0.5 hour of C and 2 hours of D.)
a) Write down the production function corresponding to this process (i.e., express B as a function of C and D).
b) Suppose the price of computer time ( pC) is 10 and the wage rate for a manual draftsman ( pD) is 5. The firm has to produce 15 blueprints. What are the costminimizing choices of C and D? On a graph with C on the horizontal axis and D on the vertical axis, illustrate your answer showing the 15-blueprint isoquant and isocost lines.
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.