Suppose that widgets can be produced using two different

production techniques, A and B. The following table provides

the total input requirements for each of five different total

output levels.

Q = 1 Q = 2 Q = 3 Q = 4 Q = 5

Tech. K L K L K L K L K L

A 2 5 1 10 5 14 6 18 8 20

B 5 2 8 3 11 4 14 5 16 6

a. Assuming that the price of labor (P

capital (P

K

L

) is $1 and the price of

) is $2, calculate the total cost of production for

each of the five levels of output using the optimal (leastcost)

technology

at each

level.

b. How many labor hours (units of labor) would be

employed at each level of output? How many machine