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jake82 jake82
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A year ago

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees.

Short description: A graph plots the quantity of L against the quantity of K. Long description: The horizontal axis represents the quantity of L. The vertical axis represents the quantity of K. The graph shows four lines and four curves. The first line representing TC equals 40 dollars begins at (0, 8) and ends at (20, 0). The second line representing TC equals 60 dollars begins at (0, 12) and ends at (30, 0). The third line representing TC equals 80 dollars begins at (0, 16) and ends at (40, 0). The fourth line representing TC equals 100 dollars begins at (0, 20) and ends at (50, 0). The curve representing Q equals 1000 passes through A (10, 5) and B (19, 3). It intersects the first line at A. The curve representing Q equals 2000 passes through C (15, 6) and D (25, 5). It intersects the second line at C. The curve representing Q equals 3000 passes through E (25, 9) and F (28, 6.5). It intersects the third line at E. The curve representing Q equals 4000 passes through G (25, 10) and H (35, 9.5). It intersects the third line at G. Note: all values are approximate.

FIGURE 8-5
Refer to Figure 8-5. Suppose this firm is producing 3000 golf tees and is at point F on the isoquant map. In order to maintain its output and minimize costs this firm should



▸ employ more labour and less capital.

▸ move to an isocost line further from the origin.

▸ not change its use of factors.

▸ employ more capital and less labour.

▸ move to an isoquant closer to the origin.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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oth987oth987
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