The least-cost input combination is and for a total cost of On the preceding graph, use the green line (triangle symbol) to show the line of equal total cost (TC) indicating the possible combinations of computers and programmers that minimizes total costs. Hint: For example, if you've found that the least expensive option for completing the database costs $1,000, then you should plot the combinations of computers and programmers that cost $1,000. To minimize costs, you know that the rate of technical substitution of labor for capital must be equal to at this point, given the stated wage and rental rate of capital.

The least-cost input combination is and for a total cost of On the preceding graph, use the green line (triangle symbol) to show the line of equal total cost (TC) indicating the possible combinations of computers and programmers that minimizes total costs. Hint: For example, if you've found that the least expensive option for completing the database costs $1,000, then you should plot the combinations of computers and programmers that cost $1,000. To minimize costs, you know that the rate of technical substitution of labor for capital must be equal to at this point, given the stated wage and rental rate of capital.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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