Suppose that a firm is operating at a point where MRTSLK = 2, PL = 3, PK = 1. 5.
8. In a diagram measuring labour on the horizontal axis and capital in the vertical axis, draw the isoquant curve on which this firm operates, the iso-cost curve on which this firm operates, and a possible expansion path for this firm.
9. Use the same diagram, show the intersection point between the expansion path and the above iso-cost curve , the intersection point between the expansion path and the above isoquant , and idraw the isoquant that passes through point B and the iso-cost curve passing through C.