Question

1. Farmer Jill finds that she can produce 200 pounds of pork by feeding her pigs the following combinations of pig feed.

Combination	Corn	Potatoes	Cost to produce
A	500	1650
B	550	1460
C	600	1280
D	650	1120
E	700	1060
F	750	1020

1. Plot the Isoquant line here.

2. If the price of potatoes is $2 per pound and the price of potatoes is $4 per pound, what is the cost of each combination?    Fill in the table above.

3. What is the minimum cost combination? Combination ________ which costs ______

4. Plot the isocost line – all the combinations of Corn and Potatoes that cost the same as the minimum cost combination.

Answer 1

The isocost line = 2C+4P=5580

we put first C=0 we get P= 5580/4 = 1395, coordinate for this point (0,1395)

we put first P=0 we get C= 5580/2 = 2790, coordinate for this point (2790,0)

Just plot the point on graph and we get isocost line