- On graph paper, using the cost diagram, illustrate the following:
- AVC, ATC, AFC, and MC.
- AVC, ATC, AFC, and MC when Fixed Cost rises by 50%.
- AVC, ATC, AFC, and MC when Variable Cost rises by 50%.
- On graph paper, using the isoquant diagram, illustrate the following:
- Cost-minimizing choice of K and L inputs for an output of q = 1,000 when the cost of capital and labour are identical.
- The new cost-minimizing choice of K and L inputs for an output of q = 1,000 in (a) when wages fall to half the cost of capital.
On graph paper, using the cost diagram, illustrate the following: AVC, ATC, AFC, and MC. AVC, ATC, AFC, and MC when Fixed Cost rises by 50%. AVC,…
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