-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 five 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 five 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 five 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