An ice cream vendor has the following production function: Q = LM = Where, Q the...

 

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An ice cream vendor has the following production function: Q = LM = Where, Q the number of ice cream cones produced per day, L = the number of workers hired per day, and M = the number of ice cream machines rented per day. Associated with this production function are the following marginal product relationships: MP = M and MP = L. M a) Plot the isoquant for 80 ice cream cones per day. b) Find the optimal combination of inputs, if the wage rate machine rental per day = per day $30, the ice cream = = $150, and 80 ice cream cones are to be produced. An ice cream vendor has the following production function: Q = LM = Where, Q the number of ice cream cones produced per day, L = the number of workers hired per day, and M = the number of ice cream machines rented per day. Associated with this production function are the following marginal product relationships: MP = M and MP = L. M a) Plot the isoquant for 80 ice cream cones per day. b) Find the optimal combination of inputs, if the wage rate machine rental per day = per day $30, the ice cream = = $150, and 80 ice cream cones are to be produced.