Using the information given in Table 5.2, draw the isoquant corresponding to an output level of 20.

Question:

Using the information given in Table 5.2,draw the isoquant corresponding to an output level of 20. Starting fromL = 4andK = 1,how much extra capital is needed to keep output constant if the labor is reduced by one unit toL = 3?How much extra capital is needed to keep output constant if labor is reduced by one more unit toL= 2?

Labor, L Capital, K 4 20 22 10 24 14 17 32 2 14 20 28 35 24 35 39 42 24 17 30 20 28 35 40 45 49 4 32 22 39 45 50 55 42 6