Question: Hello, why are there two different isocost line and so many isoquants, I am struggling understand the answer, please explain step by step thanks !
Hello, why are there two different isocost line and so many isoquants, I am struggling understand the answer, please explain step by step thanks !

A firm finds that no matter how much output it produces and no matter how input prices vary, it always minimizes its costs by buying half as many units of capital as of labour. Draw this firm's isoquant map. ANSWER: If K and L are perfect complements, the two inputs will be used in fixed proportion, no matter what the slope of the isocost line. In the graph below solid lines are isoquants and dashed lines are isocosts
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
