Economic Problem

Problem 1. In the following figure, the price of labor is $10 per unit.

1. What is the price per unit of capital?

    

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What is the marginal rate of technical substitution at pointB?

1. What is the marginal rate of technical substitution at pointA?

    

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What is the equation for the isocost curve at pointB?

1. What is the equation for the isocost curve at pointA?

    

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How many units of capital should a firm use in order to produce 300 units of output at the least cost?

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What is the minimum cost of producing 100 units of output?

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Suppose at Point A the optimal units of capital are 22. How many units of labor should a firm use in order to produce 300 units of output at the least cost?