Draw the isoquants for the production function

Reference no: EM132200952

Question: Answer the following question. Please show all your working/explanation.

Consider the production function f(K, L) = K + min {K + L}. Suppose that the unit price of labor L is w and the unit price of capital K is r .

1. Draw the isoquants for the production function f .

2. Suppose that w < r. What is C(q), i.e. the minimum cost of producing q units?

3. Suppose that w > r. What is C(q), i.e. the minimum cost of producing q units?

Reference no: EM132200952

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