The picture above shows 3 isoquants for the production function F(KL)-K1/4 1/4, as well as several...

 

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The picture above shows 3 isoquants for the production function F(KL)-K1/4 1/4, as well as several isocost lines corresponding to various input prices. If labor costs four times as much as capital, then the cost minimizing way to produce 2 units of output involves using units of capital. If capital costs four times as much as labor, then the cost minimizing way to produce 2 units of output involves using labor and capital both cost 13, then the minimum cost of producing 1 unit of output is This production function exhibits returns to scale, dollars. units of capital. If The picture above shows 3 isoquants for the production function F(KL)-K1/4 1/4, as well as several isocost lines corresponding to various input prices. If labor costs four times as much as capital, then the cost minimizing way to produce 2 units of output involves using units of capital. If capital costs four times as much as labor, then the cost minimizing way to produce 2 units of output involves using labor and capital both cost 13, then the minimum cost of producing 1 unit of output is This production function exhibits returns to scale, dollars. units of capital. If