units of capital, what is the slope of the isocost line? (1 mark) There are 2 steps to solve this one. Solution Share Step 1 To determine if the firm is minimizing its cost of production, we need to compare the marginal prod...View th...
So obviously A is correct.At this given output (which is decided by the given isoquant curve), the isocost curve is the minimum cost that can achieve this production level.This option is a little tricky. Think about the concept of tangency. Any isocost line(share same slope with the ...
The slope of an isocost line is given by the ratio –PX/PY. So for our first example above (PX = £20 and PY = £10) the slope of the isocost line will be –2. In Figure 5.4 we have plotted two isocost lines with this slope. The line closest to the ori- gin of the ...
Answer to: The slope of the line containing points Y and Z is ___. a. -0.5 b. -1 c. -2 d. -4 By signing up, you'll get thousands of step-by-step...
A line showing all combinations of L K that can be purchased for the same cost The User Cost of Capital The Cost Minimizing Input Choice 精品课件资料 Slide * Cost in the Long Run Rewriting C as linear: K = C/r - (w/r)L Slope of the isocost: is the ratio of the wage rate to ...
The absolute value of the slope of an isoquant is called the marginal rate of technical substitution. Defn. Isocost: The isocost line gives the menu of different combinations of labor and capital which are equally costly. * A profit-maximizing firm that is producing q0 units of output wants...
691、Slope斜率几何图形中与横轴上变量的单位变化相对应的纵轴上变量的变化向右上倾斜的曲线斜率为正,向右下倾斜的曲线斜率为负(如需求曲线),水平线的斜率为零 692、Socialinsuran__社会保险__提供的强制性保险预防道德危害或逆向选择等市场不灵问题,以增进社会福利 693、Socialoverheadcapital社会分摊资本经济发展所依赖...
77、内部收益率(Internal rate of return) 内部收益率是使一项投资项目的净现金流的现值等于项目投资支出的利率。 78、投资(Investment) 投资是指创造新资产的过程。 79、投资需求曲线( Investment demand curve) 投资需求曲线表示投资的总数量与额外1美元投资的收益率之间的关系。 80、等成本曲线( Isocost curve) ...
33、 Inputs: Labor (L) and capital (K) Price of labor: wage rate (w) The price of capital r = depreciation rate + interest rate Or rental rate if not purchasing These are equal in a competitive capital market,Chapter 7,43,Cost in the Long Run,The Isocost Line A line showing all ...
In this case there are two distance variables: distance from c; and distance from r1when these two variables are plotted, a straight transformation line with a slope of -1 is obtained. Since the transformation line is a straight line, it turns out in this instance that p ca...