The following production table provides estimates of the maximum amounts of output possible with different combinations of two input factors, X and Y. (Assume these are just illustrative points on a spectrum of continuous input combinations.)
a. List the different combinations of inputs X and Y that, if graphed, would illustrate an isoquant for an output of 176.
b. Assuming that output sells for $3 per unit and X is fixed at 4 units.
c. Assuming still that X is fixed at 4 units, the output of the production process sells for $3, and the cost of Y is $135 per day, how many units of Y will be employed? Explain how you reached your answer.
d. Suppose that the cost of units of both input X and input Y are the same at $135 per day. Describe how isocost curves for a cost of $135 and also for a cost of $270 would look. How would you describe both the shape and slope of the isocost curves?