Draw an isoquant-isocost line graph to illustrate the following situation: Jill Johnson can rent pizza ovens for

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Draw an isoquant-isocost line graph to illustrate the following situation: Jill Johnson can rent pizza ovens for $200 per week and hire workers for $100 per week. Currently, she is using 5 ovens and 10 workers to produce 20,000 pizzas per week and has total costs of $2,000. Jill's marginal rate of technical substitution (MRTS) equals 21. Explain why this means that she's not minimizing costs and what she could do to minimize costs.

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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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