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# Problem 1. In the following figure, the price of labor is \$10 per unit. What is the price per unit of capital? What is the marginal rate of technical substitution at pointB? What is the marginal rate of technical substitution at pointA? What is the equation for the isocost curve at pointB? What is the equation for the isocost curve at pointA? How many units of capital should a firm use in order to produce 300 units of output at the least cost? What is the minimum cost of producing 100 units of output? Suppose at Point A the optimal units of capital are 22. How many units of labor should a firm use in order to produce 300 units of output at the least cost?

Problem 1. In the following figure, the price of labor is \$10 per unit. 1. What is the price per unit of capital?
2. What is the marginal rate of technical substitution at pointB?
1. What is the marginal rate of technical substitution at pointA?
2. What is the equation for the isocost curve at pointB?
1. What is the equation for the isocost curve at pointA?
2. How many units of capital should a firm use in order to produce 300 units of output at the least cost?
3. What is the minimum cost of producing 100 units of output?

4. Suppose at Point A the optimal units of capital are 22. How many units of labor should a firm use in order to produce 300 units of output at the least cost?

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