You are given the following table for a production process
which has two variable outputs.
LI
CI 1 2 3 4 5
1 35 60 70 85 95
2 60 70 85 95 105
3 70 80 95 105 115
4 85 95 105 115 125
5 95 105 115 125 135
CI = Capital Investment
LI = Labor Investment
Sketch the isoquants corresponding to the following
output levels: 70, 85, 95, and 105.
(CI,LI)
ReplyDeleteIsoquant q=70 :(3,1) (2,2) (1,3)
Isoquant q=85 : (4,1) (2,3) (1,4)
Isoquant q=95 : (5,1) (4,2) (3,3) (2,4) (1,5)
Isoquant q=105 : (5,2) (4,3) (3,4) (2,5)