2 1 1 2 3 678 9 • Identify curves - for one isocost curve and one isoquant draw an arrow to indicate direction of increase This particular firm's MRTS - $1 we deduce -price of capital is r Given wage is given by the equation Draw the resulting new isocost lines 10 if the union doubles wages

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.10P
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Label axis variables
Identify curves
- for one isocost curve and one
isoquant draw an arrow to
indicate direction of increase
This particular firm's MITS = -1
$1 we deduce
. Given wage is
-price of capital is r =
-this firm's isocost lines are
given by the equation
C=
Draw the resulting new isocost lines
if the union doubles wages
Transcribed Image Text:1 2 5 4 3 10 9 8 7 6 1 2 3 4 5 6 7 8 9 10 Label axis variables Identify curves - for one isocost curve and one isoquant draw an arrow to indicate direction of increase This particular firm's MITS = -1 $1 we deduce . Given wage is -price of capital is r = -this firm's isocost lines are given by the equation C= Draw the resulting new isocost lines if the union doubles wages
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