ECO 420K
1. Indicate whether each of the following statements is possibly true or certainly false. Explain
a) The cost-minimizing bundle for y = 50 is l = 10 and K = 40 if labor and capital cost the same, and is l = 12 and K = 37 when labor costs $20 and capital costs $15. (1 point)
b) The cost-minimizing bundle for y = 50 is l = 10 and K = 40 if labor and capital cost $12, and is l = 15 and K = 33 when labor costs $10 and capital costs $15. (1 point)
Running Head: COST MINIMIZATION Cost MinimizationNameInstitution 1 COST MINIMIZATIONa.) The cost-minimizing bundle for y = 50 is l = 10 and K = 40 if labor and capital cost thesame, and is l =…
