Question: I'm having difficulty with these questions. K 10 If the firm uses 4 units each of labour and capital, its marginal rate of technical substitution

I'm having difficulty with these questions.

K 10 If the firm uses 4 units each of labour and capital, its marginal rate of technical substitution is . Based on this firm's isocost lines, if 00 the price of capital is 2, what is the wage? Answer: A Q = 300 W Q = 200 Submit Answer - N Q = 100 * O 3 5 6 7 8 9 10 What labour-capital combination is the least cost way of producing L 100 units? If the price of capital is $3 and the wage is $3, how much does this combination cost the firm? Answer: The straight lines in this figure represent and the curved lines represent Answer: Submit Answer Submit Answer Suppose the firm initially uses 3 units of labour and 3 units of capital. If the union increases the wage, will the isocost lines become steeper or shallower? If labour is a normal good, the firm will move to a (higher/lower) isoquant. In this case, can you tell whether the firm's quantity of labour demanded will increase or decrease? Answer: Submit

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