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You are the owner of a small bread factory and are thinking of lowering costs and expanding. Your small-business advisors suggested that you first review your operations and make some technological changes. Complete the following:
The next thing that your small business advisors asked you to do was to break down your costs and see what you can reduce.
Quantity of Workers
Quantity of Ovens
Quantity of Loaves of Bread Produced
Cost of Ovens
Cost of Workers Per Week
0
2
500
1
50
450
125
3
210
4
300
5
410
6
550
7
625
8
660
9
700
10
730
Instructions
Draw an iso-cost line for this firm, showing combinations of L and K that cost $6 and another iso-cost line showing combinations that cost $12. What are the slopes of these iso-cost lines?
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