Question

The graph below shows a firms isoquants and isocosts. The firm is initially producing Q=20 with the cost minimizing combinat

A. L=3; K=6


B. L=10; K=6


C. L=7; K=9


D. L=8; K=7

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Answer #1

B. L=10; K=6

(K is fixed at 6 units in the short run. So, the adjacent amount of L needed to produce 40 units is 10.)

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A. L=3; K=6 B. L=10; K=6 C. L=7; K=9 D. L=8; K=7 The graph below shows...
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