Suppose that a firm has a plant producing Q=10,000 units per month using capital and labor in the cost minimizing way. Depict this, showing the…Suppose that a firm has a plant producing Q=10,000 units per month using capital and labor in the cost minimizing way. Depict this, showing the…

Assume that the firm is losing money and decides on a permanent reduction in output to

Q=7,000. Show the capital and labor the firm will choose in the long run. Show the isocost the

firm locates on and indicate the amount of cost savings by the firm.