Question: Please help to answer this: 5. [Appendix Exercise] For each of the follow- ing technologies, graph a representative set of isoquants: a. Every worker requires
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5. [Appendix Exercise] For each of the follow- ing technologies, graph a representative set of isoquants: a. Every worker requires exactly one machine to work with; no substitution is possible. b. Capital and labor are perfect substitutes. c. The firm is able to substitute capital for labor, but they are not perfect substitutes. 6. [Appendix Exercise] A firm pays $10 per unit of labor and $5 per unit of capital. a. Graph the isocost curves for TC = $100, TC = $200, and TC = $500. b. Suppose that the cost of capital increases to $10. Graph the new isocost curves
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