Question: Consider a firm which uses two inputs, labor (L) and machinery (M). The firms production function is given by f(L,M)=L+2M. a)Draw the firms isoquant curves

Consider a firm which uses two inputs, labor (L) and machinery (M). The firms production function is given by f(L,M)=L+2M.

a)Draw the firms isoquant curves for output levels of y = 12 and y = 20.

B) Now suppose that the input prices are given by wL = 1 and wM = 3. Suppose that the firm wants to produce 20 units of output. Show graphically the firms cost minimizing choice of inputs by drawing a graph of the isoquant curve and isocost curves. Explain briefly your answer.

solve b

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