The price of capital is $50 per unit. Use the accompanying figure, which shows an isocost curve, to answer the questions that follow: image a. The equation for the isocost curve shown in the figure is K = _________. The price of labor is $_________ per unit. The total cost associated with this isocost curve is $_________. b. Input combination A is _________ units of labor and _________ units of capital. The total cost of input combination A is $ _________. Verify that point A satisfies the isocost equation in part a. c. For the input prices used in parts a and b, construct the isocost curve for input combinations costing $4,500. For the $4,500 isocost curve, the capital intercept is _________ and the labor intercept is _________ The equation of the isocost curve is K = _________. If 40 units of labor are employed, then _________ units of capital can be employed for a total cost of $4,500.

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