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Q. suppose a firm's production function is q=l+2k.
a) graph the isoquants for Q=6,9, and 12.
b) suppose w and r both equal q. draw the isocost line for C=6. what combination of L and K does the firm choose?
Q. Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic. Find a product that has not already been selected by another student and discuss its price elasticity and income elasticity. Explain how much control might an organization have over pricing based on a product's elasticity? Discuss which of the elasticity rules you used to determine your answer.
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