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if the cost of production is $2000, the rent of capital is r=$40, and the wage...

if the cost of production is $2000, the rent of capital is r=$40, and the wage of labor or is w=$50, draw the isocost line.

(*** Draw each case below on a separate graph.***)

- If the cost of production increases to $5000, redraw the isocost line.

- Start from the initial situation. Now, if the rent of the capital declines to $ 20, redraw the isocost line.

- Start from the initial situation. Now, if the wage of labor increases to $100, redraw the isocost line.

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