-At Albert's Pretzel Company,MP_L = 1/L,and MP_K = 1/K.The isoquant for 100 pounds of pretzels daily is shown in the above figure.Albert minimizes the cost of producing 100 pounds of pretzels daily by hiring 5 units of labor and 10 units of capital when w = 50 and r = 25.When r rises to 100,what is the minimum cost of producing 100 pounds of pretzels daily in the short run? in the long run?

Question

-At Albert's Pretzel Company,MP<sub>L</sub> = 1/L,and MP<sub>K</sub> = 1/K.The isoquant for 100 pounds of pretzels daily is shown in the above figure.Albert minimizes the cost of producing 100 pounds of pretzels daily by hiring 5 units of labor and 10 units of capital when w = 50 and r = 25.When r rises to 100,what is the minimum cost of producing 100 pounds of pretzels daily in the short run? in the long run?

Quizplus · Accepted Answer

The Answer of -At Albert's Pretzel Company,MP_L = 1/L,and MP_K = 1/K.The isoquant for 100 pounds of pretzels daily is shown in the above figure.Albert minimizes the cost of producing 100 pounds of pretzels daily by hiring 5 units of labor and 10 units of capital when w = 50 and r = 25.When r rises to 100,what is the minimum cost of producing 100 pounds of pretzels daily in the short run? in the long run?

-At Albert's Pretzel Company,MPL = 1/L,and MPK = 1/K

-At Albert's Pretzel Company,MP_L = 1/L,and MP_K = 1/K