Present a graph of the following. Label your graphs completely 1. Using the isoquant map and isocost, show that combination M is the optimum combination of inputs and not combinations E and L.
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Present a graph of the following. Label your graphs completely
1. Using the isoquant map and isocost, show that combination M is the optimum combination of inputs and not combinations E and L.
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Solved in 2 steps with 3 images
- A firm has the production function f(X, Y) = x²/2 y1/2, where X is the amount of factor x used and Y is the amount of factor y used. On a diagram we put X on the horizontal axis and Y on the vertical axis. We draw some isoquants. Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant, the isoquant has a slope of -3. The straight line we drew Select one: O a. is vertical. b. is horizontal. c. is a ray through the origin with slope 3. d. is a ray through the origin with slope 4. O e. has a negative slope.Answer in reference to diagramMark launders his white clothes using the production function q=4B + G, where B is the number of cups of Clorox bleach and G is the number of cups of a generic bleach, where Clorox bleach is four times as potent. Use the line drawing tool to graph an isoquant for output of q = 20. Label this line 'isoquant'. Carefully follow the instructions above, and only draw the required object. What is the marginal product of B? The marginal product of B is (Enter a numeric response using an integer.) What is the marginal rate of technical substitution at each point on an isoquant? The marginal rate of technical substitution is along the isoquant. C G, Cups of generic bleach 22- 20- 18- 16- 14- 12- 10- 6- 4- 2- 0+ 0 2 4 B, Cups of Clorox bleach 6 LV