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Draw the case of perfect substitutes for factors K and L for a map of isoquants. Add an isocost line, if you know that w/r MRTS. Show the point of…

Draw the case of perfect substitutes for factors K and L for a map of isoquants.

Add an isocost line, if you know that w/r > MRTS.

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Show the point of cost minimization.

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ISOCOST AND ISOQUANTS LINES INPUT (K) CBA curved lines are the isoquant curvesStraight lines represents isocost Q1 Q2 Q3 INPUT (L)Points A,B and C are the cost minimizing points(profit…

 

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