Question: How to construct isocost curves given the following data: 27 unskilled workers and 16 semiskilled workers Firm pays its unskilled workers the minimum wage but

How to construct isocost curves given the following data:

27 unskilled workers and 16 semiskilled workers

Firm pays its unskilled workers the minimum wage but pays the semiskilled workers $18 per hour

Minimum wage is expected to increase from $10.25 per hour to $15 per hour.

Firm also uses capital equipment that uses natural gas power, and other machinery that is electric. The price of electricity is expected to increase by 20 percent, while the price of natural gas is expected to remain relatively constant of the next few years.

There is some substitutability between the mix of different types of labor used, between the different types of machinery used, and between the labor and capital as inputs.

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