9. Suppose the production function facing the firm is given by f(Z, C) = min cost...

 

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9. Suppose the production function facing the firm is given by f(Z, C) = min cost of Z is $2 a unit and the cost of C is $2 a unit. nin. Suppose the a) On a graph, draw the isoquant associated with 4000 units of output. Also draw three isocost curves: the one associated with minimizing cost, one that is higher cost, and one that is lower cost. Clearly indicate the cost ordering of the isocost curves. b) How much Z and C will the firm use? What is their total cost of producing y=4000? c) Suppose the cost of Z increase to 10, use your graph to show how the firm's optimal choice of Z and C change d) Suppose the price of Z is wz, the price of C is We, and the desired output level is y. expressions for the amount of Z and C the firm will use (i.e., the conditional factor demands); what can you conclude? e) Continuing from d), find the Cost Function for the firm. Provide 9. Suppose the production function facing the firm is given by f(Z, C) = min cost of Z is $2 a unit and the cost of C is $2 a unit. nin. Suppose the a) On a graph, draw the isoquant associated with 4000 units of output. Also draw three isocost curves: the one associated with minimizing cost, one that is higher cost, and one that is lower cost. Clearly indicate the cost ordering of the isocost curves. b) How much Z and C will the firm use? What is their total cost of producing y=4000? c) Suppose the cost of Z increase to 10, use your graph to show how the firm's optimal choice of Z and C change d) Suppose the price of Z is wz, the price of C is We, and the desired output level is y. expressions for the amount of Z and C the firm will use (i.e., the conditional factor demands); what can you conclude? e) Continuing from d), find the Cost Function for the firm. Provide