9781118041581

FIGURE 5.2

Isoquants and Isocost

Lines

The two isoquants in

part (a) show the

different combinations

of labor and capital

needed to produce

636 and 800 units

of output. The isocost

lines in part (b) show

combinations of inputs

a firm can acquire at

various total costs.

Amount of Capital

6

0681012141618

8

10

12

14

16

Amount of Labor

Capital Input

5

0 5 10 15 20 25 30

10

15

20

Labor Input

TC = $120 TC = $220 TC = $300

(a) Isoquants

(b) Isocost Lines

A

B

C

Q = 636 Q = 800

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