98
Part II: Considering Which Side You’re On in the Decision-Making Process Table 6-2 illustrates the relationship between various values for labor and capital and a total product of 3,200 units for this equation.
Examining production isoquants: All input combinations are equal The relationship between labor, capital, and the quantity of output produced in the previous equation is graphically described by using a production isoquant. A production isoquant shows all possible combinations of two inputs that produce a given quantity of output. Table 6-2 shows various combinations of labor and capital that produce 3,200 units of output.
Table 6-2
Two-Input Production Function
Labor L
Capital K
Total Product q
25
1,600
3,200
50
800
3,200
75
533.3
3,200
100
400
3,200
125
320
3,200
150
266.7
3,200
175
228.6
3,200
200
200
3,200
225
177.8
3,200
250
160
3,200
275
145.5
3,200
300
133.3
3,200
325
123.1
3,200
350
144.3
3,200
375
106.7
3,200
400
100
3,200
