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A Local Non-Profit Group Prints a Weekly Newsletter

question 94

Essay

A local non-profit group prints a weekly newsletter.Professional typists earn $10 per hour and can type 2 pages per hour.Unpaid volunteers can type only 1 page per hour.Measuring hours of professional typist services on the vertical axis and hours of unpaid volunteer typist services on the horizontal axis,draw the relevant isoquant and isocost curves if the newsletter is 10 pages long.What input mix is chosen by the non-profit group if they wish to minimize the cost of the newsletter? If the group will reimburse volunteers for expenses (lunch,driving),how much must the reimbursement be for your answer to change?


Definitions:

Aspartic Acid

An amino acid with the formula C4H7NO4, important in the biosynthesis of proteins.

Histidine

An essential amino acid important in many proteins, playing a key role in enzymes and the buffering of pH in blood.

Phenylalanine

An essential amino acid that is a precursor to neurotransmitters and must be obtained through diet.

Tyrosine

An amino acid that is a building block of protein, essential for protein synthesis in humans.

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