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Suppose the production function is given by formula Q = KL. A) Draw the isoquant curve...

Suppose the production function is given by formula Q = KL.

A) Draw the isoquant curve for Q = 128. (Draw K on the vertical axis and L on the horizontal axis.)

B) Suppose K = 4. How many units of labor should the firm use if it wants to produce 128 units of output? Label it point X on the isoquant curve.

C) Suppose K = 8.How many units of labor should the firm use if it wants to produce 128 units of output? Label it point Y on the isoquant curve.

D) What is the marginal rate of technical substitution between points X and Y? Explain.

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