Describe what is the firms cost minimizing input mix

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Suppose a firm is producing concrete with the Cobb Douglas production function:

c = s0.4g0.6

c = pounds of concrete, s = pounds of cement, g = pounds of gravel

it wants to produce 10,000 pounds of concrete. Concrete is $10/pound and gravel is $2/pound

What is the firm's cost minimizing input mix? What is the firms total and average cost?

If gravel rises to $4/pound, which direction will the isoquant and isocost curve shift and what will be the new level of cost?

Reference no: EM13237764

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