- 4 A Firm S Production Function Is Q K Xl The Prices Of K And L Are 2 And 1 Respectively A Draw Two Separate I 1 (16.98 KiB) Viewed 10 times
4. A firm's production function is Q = √√K XL. The prices of K and L are $2 and $1, respectively. a. Draw two separate i
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4. A firm's production function is Q = √√K XL. The prices of K and L are $2 and $1, respectively. a. Draw two separate i
4. A firm's production function is Q = √√K XL. The prices of K and L are $2 and $1, respectively. a. Draw two separate isoquants for two levels of production. Mark two separate points on each. b. Draw two separate iso-cost lines for two levels of cost. Mark two separate points on each. c. Suppose the firm wants to produce 10 units of the product. How many units of K and L should they use? d. The price of K doubled. How much more or less L do they use due to the substitution effect (i.e., holding constant the production level at 10)?