The hourly output of chili at my barbeque business (measured in quarts) has the production function:q = 20v(K * L)where K is the number of large pots used each hour and L is the number of worker hours employed. Pot rental costs $2/hour and worker wages are $8 per hour.a. Graph the isoquant for which q = 2000 quarts of chili.b. For this production function, RTS = K / L. (I will show you how to find thisyourself in a future lecture, but for now it is given.). If I know that I want to produce 2000 quarts of chili, what combination of pots and workers should I use to minimize my costs? (Note that you will need to use the production function, plugging in 2000 for q and solving in terms of K or L, to plug into the cost- minimization expression in order to solve this).
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USE THE CALCULATOR BELOW TO GET THE QUOTE