Question

How do I find the iso-cost line?

AGEC 105 Homework 6 BE NEAT SHOW YOUR WORK! 1. Two variable inputs for growing corn are nitrogen fertilizer and irrigation water. Fixed input /ton and irigation water cost is 500 acres of land. Assuming nitrogen fertilizer costs $1000 $100/acre feet On the graph provided, plot the firm's iso-cost line if the producer has $40,000 to spend on these two variable inputs. Plot the firm's iso-cost line if the firm's available capital decreases to $30,000. Plot the firm's iso-cost line if the firm's available capital increases to $70,000. Be sure to properly label each iso-cost line. 800 a. 700 600 500 400 300 200 100 0 10 20 30 40 50 60 70 80 fertilizer

Answer 1