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Besanko & Braeutigam – Microeconomics, 4th edition Solutions Manual
Chapter 7
Costs and Cost Minimization
Solutions to Review Questions

1. A biotechnology firm purchased an inventory of test tubes at a price of $0.50 per tube at
some point in the past. It plans to use these tubes to clone snake cells. Explain why the
opportunity cost of using these test tubes might not equal the price at which they were
acquired.
Acquisition cost and opportunity cost are not necessarily the same. As the text points out,
opportunity costs are forward looking. The opportunity cost is the payoff associated with the
best of the alternatives that are not chosen. Once the test tubes are purchased, the decision is to
use the tubes to clone snake cells or something else. It is possible that someone values the tubes
for some purpose at higher (or lower) than $0.50 so that selling the tubes would earn the firm
something more (or less) than $0.50 per tube. The opportunity cost then is different than the
acquisition cost.
2. You decide to start a business that provides computer consulting advice for students in
your residence hall. What would be an example of an explicit cost you would incur in
operating this business? What would be an example of an implicit cost you would incur in
operating this business?
Since the business is computer consulting, an explicit cost, a cost involving a direct monetary
outlay, might be the cost of paper and ink used to advertise your service. An implicit cost, a cost
not involving a direct monetary outlay, might be the opportunity cost of your time, e.g., to earn
money working at the student fitness center or to study for your own classes.
3. Why does the “sunkness” or “nonsunkness” of a cost depend on the decision being
made?
Whether or not a particular cost is sunk or not depends on the decision being made. If the cost
does not change as a result of the decision the cost is sunk, while if the cost does change the cost
is not sunk.
A firm’s total costs are TC = rK + wL, so the equation for a typical isocost line is
TC w
K= − L.
r r
Since the slope of the isocost line is given by − w / r , if the price of labor increases the isocost
line will become steeper and if the price of capital increases the isocost line will become flatter.
4. How does an increase in the price of an input affect the slope of an isocost line?
Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 1

5. Could the solution to the firm’s cost-minimization problem ever occur off the isoquant
representing the required level of output?
The solution to the firm’s cost minimization problem must lie on an isoquant. While the firm
could produce a given output with a combination of inputs not on the isoquant, say by using
more labor and more capital than necessary, a combination such as this would not be efficient
and therefore not cost minimizing.
6. Explain why, at an interior optimal solution to the firm’s cost-minimization problem, the
additional output that the firm gets from a dollar spent on labor equals the additional
output from a dollar spent on capital. Why would this condition not necessarily hold at a
corner point optimal solution?
To understand why at an interior optimum the additional output the firm gets from a dollar spent
on labor must equal the additional output the firm gets from a dollar spent on capital, assume
these were not equal. For example, suppose the firm could get more output from a dollar spent
on labor than on a dollar spent on capital. Then the firm could take one dollar away from capital
and reallocate it to labor. Since the firm gets more output from a dollar of labor than from a
dollar of capital, it will require the firm to spend less than one dollar on labor to offset the
decline in output from taking one dollar away from capital. This implies the firm can keep
output at the same level but do so at a lower cost. Therefore, if these amounts are not equal the
firm is not minimizing cost.
This requirement does not necessarily hold at a corner solution. While the firm could potentially
reduce cost by reallocating spending to the more productive input, at a corner solution, by
definition, the firm is not using one of the inputs. There is no further opportunity to reallocate
spending if the firm is spending nothing on one of the inputs, i.e., the firm cannot move to a
point where one of the inputs is negative.
7. What is the difference between the expansion path and the input demand curve?
The expansion path traces out the cost minimizing combinations of all inputs as the level of
output is increased (expanded) holding the prices of the inputs fixed. An input demand curve
traces out a firm’s cost minimizing quantity of one input as the price of that input varies holding
the level of output and the prices of the other inputs fixed.
8. In Chapter 5 you learned that, under certain conditions, a good could be a Giffen good:
An increase in the price of the good could lead to an increase, rather than a decrease, in the
quantity demanded. In the theory of cost minimization, however, we learned that, an
increase in the price of an input will never lead to an increase in the quantity of the input
used. Explain why there cannot be “Giffen inputs.”
Giffen goods arise when the income effect is so severely negative that it offsets the substitution
effect. This can happen because in consumer choice, income was an exogenous variable –
therefore, changes in price affect both the relative substitutability of goods (via the tangency
condition) as well as the consumer’s purchasing power (via the budget constraint). By contrast,
in the cost minimization problem output is exogenous while the expenditure is the objective

function. Thus, a change in an input price affects only the relative substitutability of inputs (via
the tangency condition) – there is no corresponding effect on the production constraint, since
prices do not appear there. So while there is a “substitution effect” in cost minimization, there is
no corresponding “income effect” as in consumer choice. Therefore, increases in input prices
will always lead to decreases in the use of that input (except at corner solutions, where there
might be no change). So there cannot be a Giffen input.
9. For a given quantity of output, under what conditions would the short-run quantity
demanded for a variable input (such as labor) equal the quantity demanded in the long
run?
Assuming quantity is fixed, the short-run demand for a variable input would equal its long-run
demand if the level of the fixed input in the short run was cost minimizing for the quantity of
output being produced in the long run.
Solutions to Problems
7.1. A computer-products retailer purchases laser printers from a manufacturer at a price
of $500 per printer. During the year the retailer will try to sell the printers at a price higher
than $500 but may not be able to sell all of the printers. At the end of the year, the
manufacturer will pay the retailer 30 percent of the original price for any unsold laser
printers. No one other than the manufacturer would be willing to buy these unsold printers
at the end of the year.
a) At the beginning of the year, before the retailer has purchased any printers, what is the
opportunity cost of laser printers?
b) After the retailer has purchased the laser printers, what is the opportunity cost
associated with selling a laser printer to a prospective customer? (Assume that if this
customer does not buy the printer, it will be unsold at the end of the year.)
c) Suppose that at the end of the year, the retailer still has a large inventory of unsold
printers. The retailer has set a retail price of $1,200 per printer. A new line of printers is
due out soon, and it is unlikely that many more old printers will be sold at this price. The
marketing manager of the retail chain argues that the chain should cut the retail price by
$1,000 and sell the laser printers at $200 each. The general manager of the chain strongly
disagrees, pointing out that at $200 each, the retailer would “lose” $300 on each printer it
sells. Is the general manager’s argument correct?
a) $500
b) 30% of $500, or $150
c) By not lowering the price and assuming the firm cannot sell any more printers, the best
the firm can hope for is the $150 the firm can receive from the manufacturer. If the firm drops
the price to $200 and sells the printers on their own they can actually “profit” an additional $50
over their best available alternative.

7.2. A grocery shop is owned by Mr. Moore and has the following statement of revenues
and costs:
Revenues $250,000
Supplies $25,000
Electricity $6,000
Employee salaries $75,000
Mr. Moore’s salary $80,000
Mr. Moore always has the option of closing down his shop and renting out the land for
$100,000. Also, Mr. Moore himself has job offers at a local supermarket at a salary of
$95,000 and at a nearby restaurant at $65,000. He can only work one job, though. What are
the shop’s accounting costs? What are Mr. Moore’s economic costs? Should Mr. Moore
shut down his shop?
The accounting costs are simply the sum: 25,000 + 75,000 + 80,000 + 6,000 = $186,000 and the
shop’s accounting profit is $64,000 which means that Mr. Moore’s total gain from this venture is
80,000 + 64,000 = $144,000.
The economic costs also include the opportunity cost of the land rental ($100,000) and of Mr.
Moore’s next best alternative, which in this case is $95,000. That is, Mr. Moore loses $15,000 by
not choosing his next best alternative. Therefore Mr. Moore’s total economic costs are 186,000 +
100,000 + 15,000 = $301,000, which exceeds his revenues by $51,000.
If he were to shut down the shop, Mr. Moore would earn 100,000 + 95,000 = $195,000 which is
more than the $144,000 he currently earns (by precisely the $51,000 figure from above).
Therefore he should shut down the shop.
7.3. Last year the accounting ledger for an owner of a small drugstore showed the
following information about her annual receipts and expenditures. She lives in a
tax-free country (so don't worry about taxes).
Revenues $1,000,000
Wages paid to hired labor (other than herself) $300,000
Utilities (fuel, telephone, water) $ 20,000
Purchases of drugs and other supplies for the store $500,000
Wages paid to herself $100,000
She pays a competitive wage rate to her workers, and the utilities and drugs and
other supplies are all obtained at market prices. She already owns the building, so
she has no cash outlay for its use. If she were to close the business, she could avoid
all of her expenses, and, of course, would have no revenue. However, she could rent
out her building for $200,000. She could also work elsewhere herself. Her two
employment alternatives include working at another drugstore, earning wages of
$100,000, or working as a freelance consultant, earning $80,000. Determine her
accounting profit and her economic profit if she stays in the drug store business. If
the two are different, explain the difference between the two values you have
calculated.
Her accounting profit equals revenues less all of the expenses reflected in the ledger:
$1,000,000 - $300,000 - $20,000 - $500,000 - $100,000 = $80,000.

All of the accounting costs are also economic costs. The first three expense items (wages
paid to hired labor, utilities, and purchases of drugs and supplies) are expenses in
competitive markets, so the opportunity cost is reflected in the market prices. Further, the
wages she pays herself are the same as the opportunity cost of her time, because the most
she could earn if she closes her business is $100,000 working at another drugstore.
The economic costs of the business include all of the accounting costs, plus the
$200,000 opportunity cost of the building because she could earn that if she exits the drug
store business. Her economic profit is her accounting profit ($80,000) less the additional
opportunity cost ($200,000) not included in the accounting cost. So her economic profit
is actually -$120,000.
We can look at this another way. If she continues to work at the grocery store, she
earns an accounting profit of $80,000, plus the salary she pays herself ($100,000). But if
she exits the business, her salary working for another drugstore would be $100,000, and
she would receive $200,000 rent for the building. She would therefore be better off by
$120,000 if she takes the job working for another drugstore.
7.4. A consulting firm has just finished a study for a manufacturer of wine. It has
determined that an additional man-hour of labor would increase wine output by 1,000
gallons per day. Adding another machine-hour of fermentation capacity would increase
output by 200 gallons per day. The price of a man-hour of labor is $10 per hour. The price
of a machine-hour of fermentation capacity is $0.25 per hour. Is there a way for the wine
manufacturer to lower its total costs of production and yet keep its output constant? If so,
what is it?
At the optimum we must have

MPK MPL
=
r w
In this problem we have
200 1000

0.25 10
800  100
This implies that the firm receives more output per dollar spent on an additional machine hour of
fermentation capacity than for an additional hour spent on labor. Therefore, the firm could lower
cost while achieving the same level of output by using fewer hours of labor and more hours of
fermentation capacity.
7.5. A firm uses two inputs, capital and labor, to produce output. Its production function
exhibits a diminishing marginal rate of technical substitution.
a) If the price of capital and labor services both increase by the same percentage amount
(e.g., 20 percent), what will happen to the cost-minimizing input quantities for a given
output level?

b) If the price of capital increases by 20 percent while the price of labor increases by 10
percent, what will happen to the cost-minimizing input quantities for a given output level?
a) If the price of both inputs change by the same percentage amount, the slope of the isocost
line will not change. Since we are holding the level of output fixed, the isocost line will be
tangent to the isoquant at the same point as prior to the price increase. Therefore, the cost-
minimizing quantities of the inputs will not change.
b) If the price of capital increases by a larger percentage than the price of labor, then,
relatively speaking, the price of labor has become cheaper. The firm will substitute away from
capital and add labor until either the tangency condition holds or a corner solution is reached.
7.6. A farmer uses three inputs to produce vegetables: land, capital, and labor. The
production function for the farm exhibits diminishing marginal rate of technical
substitution.
a) In the short run the amount of land is fixed. Suppose the prices of capital and labor both
increase by 5 percent. What happens to the cost-minimizing quantities of labor and capital
for a given output level? Remember that there are three inputs, one of which is fixed.
b) Suppose only the cost of labor goes up by 5 percent. What happens to the cost-
minimizing quantity of labor and capital in the short run.
a) The amount of land used in production is fixed in the short-run. Hence, in the short-run
the farmer chooses amount of capital and labor. It follows that cost-minimizing quantities of
labor and capital have to satisfy equation MPL / MPK = w/r where w and r denote prices of labor
and capital. Notice that w/r = (1.05 w)/ (1.05 r). The cost-minimizing quantities of inputs, for
each level of output, do not change when prices of both inputs go up by 5% and quantity of land
is fixed.
b) For a given output level, the cost-minimizing farmer uses more capital and less labor.
7.7. The text discussed the expansion path as a graph that shows the cost-minimizing input
quantities as output changes, holding fixed the prices of inputs. What the text didn’t say is
that there is a different expansion path for each pair of input prices the firm might face. In
other words, how the inputs vary with output depends, in part, on the input prices.
Consider, now, the expansion paths associated with two distinct pairs of input prices, (w1,
r1) and (w2, r2). Assume that at both pairs of input prices, wehave an interior solution to the
cost-minimization problem for any positive level of output. Also assume that the firm’s
isoquants have no kinks in them and that they exhibit diminishing marginal rate of
technical substitution. Could these expansion paths ever cross each other at a point other
than the origin (L = 0, K = 0)?
Imagine that two expansion paths did cross at some point. Recall that the expansion path traces
out the cost- minimizing combinations of inputs as output increases. Essentially the expansion
path traces out all of the tangencies between the isocost lines and isoquants. These tangencies
occur at the point where

MPL w
=
MPK r
If the expansion paths cross at some point then the cost minimizing combination of inputs must
be identical with both sets of prices. This would require that
MPK MPL MPK MPL

= and =
r1 w1 r2 w2
Unless the input prices are proportional, i.e. unless w1 / r1 = w2 / r2, it is not possible for both of
these equations to hold. Therefore, it is not possible for the expansion paths to cross unless the
prices are proportional, in which case the two expansion paths will be identical.
7.8. Suppose the production of airframes is characterized by a CES production function: Q

= (L½ + K½)2. The marginal products for this production function are MPL = (L½ + K½)L−½
and MPK = (L½+ K½)K−½. Suppose that the price of labor is $10 per unit and the price of
capital is $1 per unit. Find the cost-minimizing combination of labor and capital for an
airframe manufacturer that wants to produce 121,000 airframes.
The tangency condition implies
 L1/ 2 + K 1/ 2  K −1/ 2  L1/ 2 + K 1/ 2  L−1/ 2

=
r w
1 1
=
r K w L
w L =r K
K w2
=
L r2
Given that w = 10 and r = 1 , this implies
K
100 =
L
100 L = K
Returning to the production function and assuming Q = 121, 000 yields

2
121, 000 =  L1/ 2 + K 1/ 2 
2
121, 000 =  L1/ 2 + (100 L)1/ 2 
2
121, 000 =  L1/ 2 + 10 L1/ 2 
2
121, 000 = 11L1/ 2 
121, 000 = 121L
1, 000 = L
Since K = 100 L , K = 100(1000) = 100, 000 . The cost minimizing quantities of capital and labor
to produce 121,000 airframes is K = 100, 000 and L = 1, 000 .
7.9. Suppose the production of airframes is characterized by a Cobb–Douglas production

function: Q = LK. The marginal products for this production function are MPL = K and
MPK = L. Suppose the price of labor is $10 per unit and the price of capital is $1 per unit.
Find the cost-minimizing combination of labor and capital if the manufacturer wants to
produce 121,000 airframes.
The tangency condition implies

K
10 =
L
10 L = K
Substituting into the production function yields

121, 000 = LK
121, 000 = L(10 L)
121, 000 = 10 L2
12,100 = L2
110 = L
Since K = 10 L , K = 1,100 . The cost-minimizing quantities of labor and capital to produce
121,000 airframes are K = 1,100 and L = 110 .
7.10. The processing of payroll for the 10,000 workers in a large firm can either be done
using 1 hour of computer time (denoted by K) and no clerks or with 10 hours of clerical
time (denoted by L) and no computer time. Computers and clerks are perfect substitutes;
for example, the firm could also process its payroll using 1/2 hour of computer time and 5
hours of clerical time.
a) Sketch the isoquant that shows all combinations of clerical time and computer time that
allows the firm to process the payroll for 10,000 workers.

b) Suppose computer time costs $5 per hour and clerical time costs $7.50 per hour. What
are the cost-minimizing choices of L and K? What is the minimized total cost of processing
the payroll?
c) Suppose the price of clerical time remains at $7.50 per hour. How high would the price
of an hour of computer time have to be before the firm would find it worthwhile to use only
clerks to process the payroll?
a)
1.2
1
0.8
K
0.6
0.4
0.2
0
0 2 4 6 8 10 12
L
K and L are perfect substitutes, meaning that the production function is linear and the isoquants
are straight lines. We can write the production function as Q = 10,000K + 1000L, where Q is
the number of workers for whom payroll is processed.
b) If r = 5 and w = 7.50 , the slope of a typical isocost line will be −7.5 / 5.0 = −1.5 . This is
steeper than the isoquant implying that the firm will employ only computer time ( K ) to
minimize cost. The cost minimizing combination is K = 1 and L = 0 . This outcome can be seen
in the graph below. The isocost lines are the dashed lines.
2.5
2
1.5 Optimum
K
1
0.5
0
0 2 4 6 8 10 12
L
The total cost to process the payroll for 10,000 workers will be TC = 5(1) + 7.5(0) = 5 .
c) The firm will employ clerical time only if MPL / w > MPK / r. Thus we need 0.1 / 7.5 >
1/r or r > 75.

7.11. A firm produces an output with the production function Q = KL, where Q is the
number of units of output per hour when the firm uses K machines and hires L workers
each hour. The marginal products for this production function are MPK = L and MPL = K.
The factor price of K is 4 and the factor price of L is 2. The firm is currently using K = 16
and just enough L to produce Q = 32. How much could the firm save if it were to adjust K
and L to produce 32 units in the least costly way possible?
Currently the firm must be using L = Q/K = 32/16 = 2 units of labor. Let the factor prices of
capital and labor be, respectively, r and w.
Its total expenditure is C = wL + rK = 2(2) + 4(16) = 68.
If it were to minimize cost, it would hire L and K so that (1) MPK/r = MPL/w, or L/4 = K/2, or L
= 2K and (2) Q = LK.
(1) and (2) imply that Q = 2K2, or 32 = 2K2, and thus K = 4 and L = 8.
So Q = 32 can be produced efficiently with a cost of C = wL + rK = 2(8) + 4(4) = 32.
The firm could save 68 – 32 = 36 by producing efficiently.
7.12. A firm operates with the production function Q = K2L. Q is the number of
units of output per day when the firm rents K units of capital and employs L
workers each day. The marginal product of capital is 2KL, and the marginal
product of labor is K2. The manager has been given a production target: Produce
8,000 units per day. She knows that the daily rental price of capital is $400 per unit.
The wage rate paid to each worker is $200 day.
a) Currently the firm employs at 80 workers per day. What is the firm’s daily total
cost if it rents just enough capital to produce at its target?
b) Compare the marginal product per dollar sent on K and on L when the firm
operates at the input choice in part (a). What does this suggest about the way the
firm might change its choice of K and L if it wants to reduce the total cost in
meeting its target?
c) In the long run, how much K and L should the firm choose if it wants to minimize
the cost of producing 8,000 units of output day? What will the total daily cost of
production be?
a) Suppose that the firm is operating in the short run, with L = 80. To produce Q = 8000,
how much K will it require? From the production function we observe that 8,000 = K2
(80) => K = 10.
The total cost would be C = wL + rK = $200(80) + $400(10) = $2,000 per day.
b) Let’s examine the “bang for the buck” for K and L when K = 10 and L = 80.
For capital: MPK / r = 2KL / 400 = 2(10)(80) / 400 = 4
For labor: MPL / w = K2 / 200 = 102 / 200 = 0.5
So the marginal product per dollar spent on capital exceeds that of labor. The firm would
like to rent more capital and hire fewer workers.

c) Because the production function is Cobb-Douglas, we know that it has diminishing

MRTSL,K and that the isoquants do not intersect either the K or L axis. Thus the cost
reducing basket (K,L) will be interior (with K > 0 and L > 0). To find the optimum, we
use the two conditions:
(1) Tangency condition: MPK / MPL = r / w => 2KL/K2 = 400 / 200 => K = L
(2) Production Requirement: K2L = 8,000
Together equations (1) and (2) tell us that K = 20 and L = 20.
The total cost would be C = wL + rK = $200(20) + $400(20) = $12,000 per day.
7.13. Consider the production function Q = LK, with marginal products MPL = K and MPK
= L. Suppose that the price of labor equals w and the price of capital equals r. Derive
expressions for the input demand curves.
From the tangency condition, we get

K w
=
L r
 w
K = L
r
Substituting into the production function yields

Q = LK
 w
Q = L  L
r
 w
Q =   L2
r
1/ 2
 rQ 
L= 
 w 
This represents the input demand curve for L . Since
 w
K = L
r
we have
1/ 2
 w   rQ 
K =   
 r  w 
1/ 2
 wQ 
K = 
 r 
This represents the input demand curve for K .

7.14. A cost-minimizing firm’s production function is given by Q = LK, where MPL = K and
MPK = L. The price of labor services is w and the price of capital services is r. Suppose you
know that when w = $4 and r = $2, the firm’s total cost is $160. You are also told that when
input prices change such that the wage rate is 8 times the rental rate, the firm adjusts its
input combination but leaves total output unchanged. What would the cost-minimizing
input combination be after the price changes?
K w
Using the tangency condition, with the original input prices: = = 2 . So, K = 2L. Also,
L r
using the information on total costs, 4 L + 2 K = 160 . Combining these two equations, we get (L,
K) = (20, 40). Therefore the firm produces 20*40 = 800 units of output.
After the prices change, even though we don’t know the numerical values of the input prices, we
can still answer the question using the fact that we’re told w = 8r. The tangency condition
K
implies that = 8, so K = 8L. Also, we have KL = 800 . This implies that the optimal input
L
combination is (L, K) = (10, 80).
7.15. Ajax, Inc. assembles gadgets. It can make each gadget either by hand or with a
special gadget-making machine. Each gadget can be assembled in 15 minutes by a worker
or in 5 minutes by the machine. The firm can also assemble some of the gadgets by hand
and some with machines. Both types of work are perfect substitutes, and they are the only
inputs necessary to produce the gadgets.
a) It costs the firm $30 per hour to use the machine and $10 per hour to hire a worker. The
firm wants to produce 120 gadgets. What are the cost-minimizing input quantities?
Illustrate your answer with a clearly labeled graph.
b) What are the cost-minimizing input quantities if it costs the firm $30 per hour to use the
machine, and $10 per hour to hire a worker? Illustrate your answer with a graph.
c) Write down the equation of the firm’s production function for the firm. Let G be the
number of gadgets assembled, M the number of hour the machines are used, and L the
number of hours of labor.
a) Isoquants for the production function are straight lines. At the given input prices slope of
an isoquant is equal to the ratio of the input prices. Hence, all positive input quantities (measured
in work hours) such that 4L + 12M = 120 are cost-minimizing.

M
Cost-minimizing
10 inputs when
hours pm = $30, pw = $10.
30 hours L
b) When one hour of the machine’s work costs $20 cost-minimizing firm does not use
manual work at all. The cost-minimizing quantity of the machine’s work necessary to produce
120 widgets is equal to M = 120/12 = 10 hours. The firm spends $200. (Note that if the firm were
to use only manual labor, the cost would be $300 ( = 30 hours x $10 per hour).
M Cost-minimizing
inputs when
10 pm = $20, pw = $10.
hours
Isoquant line
G = 120
Isocost line
Total Cost = $200
30 hours L
c) G = 4L + 12M
7.16. A construction company has two types of employees: skilled and unskilled. A skilled
employee can build 1 yard of a brick wall in one hour. An unskilled employee needs twice

as much time to build the same wall. The hourly wage of a skilled employee is $15. The
hourly wage of an unskilled employee is $8.
a) Write down a production function with labor. The inputs are the number of hours of
skilled workers, LS, the number of hours worked by unskilled employees, LU, and the
output is the number of yards of brick wall, Q.
b) The firm needs to build 100 yards of a wall. Sketch the isoquant that shows all
combinations of skilled and unskilled labor that result in building 100 yards of the wall.
c) What is the cost-minimizing way to build 100 yards of a wall? Illustrate your answer on
the graph in part (b).
a) The production function is Q = LS + ½ LU where LS denotes hours worked by skilled

workers and LU denotes hours worked by unskilled workers. Both types of labor are perfect
substitutes.
b) The isoquant is a straight line.
LS
100h
Isoquant representing 100

yards of wall
Isoccost line representing

$1500 expenditure
175h 200h LU
c) MPLs/ws = 1/15; MPLu/wu = 0.5/8 = 1/16. Thus, the “bang for the buck” is higher for
skiled labor, and the firm will use only skilled labor.
Note that the total cost of building 100 yards with skilled labor is (100 hours)($15/ hour) =
$1500.
The total cost of building 100 yards with unskilled labor is (200 hours)($8/ hour) = $1600.
The isocost line representing a $1500 expenditure is drawn as a dotted line in the graph in (b).
The isocost line is more steeply sloped than the isoquant in the graph because the marginal rate
of technical substitution of unskilled labor for unskilled labor is equal to ½, while the ratio of
input prices is equal to 8/15.

7.17. A paint manufacturing company has a production function Q = K + √L. For this
production function MPK = 1 and MPL = 1/(2√L). The firm faces a price of labor w that
equals $1 per unit and a price of capital services r that equals $50 per unit.
a) Verify that the firm’s cost-minimizing input combination to produce Q = 10 involves no
use of capital.
b) What must the price of capital fall to in order for the firm to use a positive amount of
capital, keeping Q at 10 and w at 1?
c) What must Q increase to for the firm to use a positive amount of capital, keeping w at 1
and r at 50?
a) First, note that this production function has diminishing MRSL,K. The tangency condition
would imply that 1 / 2 L = 1 / 50 or L = 625. Substituting this back into the production function
we see that K = 10 – 25 = –15. Since the firm cannot use a negative amount of capital, the
tangency condition is not valid in this case.
Looking at the corner with K = 0, since Q = 10 the firm requires L = Q2 = 100 units of labor. At
this point, MPL / w = (1/20)/1 = 0.05 > MPK / r = 1/50 = 0.02. Since the marginal product per
dollar is higher for labor, the firm will use only labor and no capital.
MPL MPK
b) The firm will use a positive amount of capital when = , or 2 L = r. Thus L =
w r
0.25r2. From the production constraint K = Q − L = 10 – 0.5r. So if K > 0 then we must
have 10 – 0.5r > 0, or r < 20.
c) Again, using the tangency condition we must have 2 L = r. Therefore, since r = 50, L =
625. From the production constraint, the input demand for capital is K = Q − L = Q – 25. So
if K > 0 then we must have Q > 25.
7.18. A researcher claims to have estimated input demand curves in an industry in which
the production technology involves two inputs, capital and labor. The input demand curves
he claims to have estimated are L = wr2Q and K = w2rQ. Are these valid input demand
curves? In other words, could they have come from a firm that minimizes its costs?
No, these are not valid input demand curves. In both cases the quantity of the input is positively
related to the input’s price. Such upward-sloping input demand curves cannot exist.
7.19. A manufacturing firm’s production function is Q = KL + K + L. For this production

function, MPL = K + 1 and MPK = L + 1. Suppose that the price r of capital services is equal
to 1, and let w denote the price of labor services. If the firm is required to produce 5 units
of output, for what values of w would a cost-minimizing firm use
a) only labor?
b) only capital?
c) both labor and capital?

If K = 0, then the firm must hire L = 5 units of labor. For this to be optimal, it must be that MPL
/ w > MPK / r, or 1/w > 6. In other words, w < 1/6.
If L = 0, then the firm must hire K = 5 units of capital. For this to be optimal, it must be that
MPL / w < MPK / r, or 6/w > 1. In other words, w > 6.
For the firm to use both capital and labor, it must be that 1/6 < w < 6. To see why, notice that
the indifference curves will have diminishing MRTSL,K. In particular, MRTSL,K = 6 where the Q
= 5 indifference curve intersects the K-axis (where L = 0). Diminishing MRTSL,K implies that
the Q = 5 indifference curve will gradually flatten out until it intersects the L-axis (where K = 0),
at which point MRTSL,K = 1/6.
7.20. Suppose a production function is given by Q = min(L, K)—that is, the inputs are
perfect complements. Draw a graph of the demand curve for labor when the firm wants to
produce 10 units of output (Q = 10).
The input demand curves will be vertical lines, representing the fact that the demand by firms for
such inputs is inelastic. If the firm’s production function is Q = min( L, K ) then, holding fixed
the quantity of production and the price of capital, if the wage rate were to increase it would not
change the firm’s requirement for labor. Therefore, the demand for each input is independent of
price and the demand curves are vertical lines.
7.21. A firm’s production function is Q = min(K , 2L), where Q is the number of

units of output produced using K units of capital and L units of labor. The factor
prices are w = 4 (for labor) and r = 1 (for capital). On an optimal choice diagram
with L on the horizontal axis and K on the vertical axis, draw the isoquant for Q =
12, indicate the optimal choices of K and L on that isoquant, and calculate the total
cost.
The isoquant Q = 12 is shown for this Leontief technology. To produce Q = 12, the firm
will need at least K = 12 and L = 6. This will cost the firm C = wL + rK = 4(6) + 1(12) =
36. The isocost line representing an expenditure of 36 is drawn. The optimal basket of
inputs is A.
B
K
A
12 Q = 12
Isocost C = 36
Isocost line has slope -w/r = -4
L
6

7.22. Suppose a production function is given by Q = K + L—that is, the inputs are perfect
substitutes. For this production function, MPL = 1 and MPK = 1. Draw a graph of the
demand curve for labor when the firm wants to produce 10 units of output and the price of
capital services is $1 per unit (Q = 10 and r = 1).
Recall that with a linear production function we are usually going to get corner point solutions.
In this case, the firm will employ only labor and no capital if labor is cheap enough or,
MPL MPK br
 i.e. if w  . Similarly it will use just capital if the rental rate is low enough i.e.
w r a
aw Q
r . If the firm uses only labor, it will use L = units regardless of the price, and similarly
b a
Q
it will use K = units of capital if it uses any capital at all. The input demand curve for labor
b
for a given price, r, of capital, is shown below.
w
br/a
Q/a L
7.23. Suppose a production function is given by Q = 10K + 2L. The factor price of labor is
1. Draw the demand curve for capital when the firm is required to produce Q = 80.
With this production function the firm views K and L as perfect substitutes.
The firm will be at a corner point with K = 0 when MPK/r < MPL/w, or when 10/r <2/1, or when
r > 5.
The firm will be at a corner point with L = 0 when MPK/r > MPL/w, or when 10/r >2/1, or when r
< 5. When the firm needs to produce Q = 80, how much capital will it need? The production
function shows that 80 = 10K, or K = 8 units.
When r = 5, the firm might use any combination of K and L along the isoquant 80 = 10K + 2L.
The firm might therefore use any K such that 0 < K < 8.
The graph of the demand for labor is as shown.

r Demand for Capital

(Heavy curve)
K
8
7.24. Consider the production function Q = K + √L. For this production function, MPL =
1/(2√L) and MPK = 1. Derive the input demand curves for L and K, as a function of the
input prices w (price of labor services) and r (price of capital services). Show that at an
interior optimum (with K > 0 and L > 0) the amount of L demanded does not depend on Q.
What does this imply about the expansion path?
1 w r
The tangency condition implies that = , or L = . Clearly the demand curve for L is
2 L r 2w
not a function of the level of output, Q. Therefore, as the level of output changes, the amount of
labor is constant. Therefore, if we were to graph isoquants with labor on the horizontal axis, the
expansion path for labor would just be a straight, vertical line.
The demand curve for capital can be derived by substituting the demand curve for labor into the
r r
production function. That is, K + = Q, so K = Q − .
2w 2w
7.25. A firm has the production function Q = LK. For this production function, MPL = K
and MPK = L. The firm initially faces input prices w = $1 and r = $1 and is required to
produce Q = 100 units. Later the price of labor w goes up to $4. Find the optimal input
combinations for each set of prices and use these to calculate the firm’s price elasticity of
demand for labor over this range of prices.
K
Using the tangency condition, initially = 1 , implying that K = L. Since KL = 100, we get K =
L
L = 10.
Under the new prices, the tangency condition implies that K=4L. This means that the optimal
input combination is (L, K) = (5, 20).
The percent change in price is (4 – 1)*100 = 300%. While the percent change in the demand for
labor is [(5 – 10)/10]*100 = –50%. Therefore the price elasticity of demand over this range of
prices is –50/300 = –1/6.
7.26 A bicycle is assembled out of a bicycle frame and two wheels.

a) Write down a production function of a firm that produces bicycles out of frames and
wheels. No assembly is required by the firm, so labor is not an input in this case. Sketch the

isoquant that shows all combinations of frames and wheels that result in producing 100
bicycles.
b) Suppose that initially the price of a frame is $100 and the price of a wheel is $50. On the
graph you drew for part (a), show the choices of frames and wheels that minimize the cost
of producing 100 bicycles, and draw the isocost line through the optimal basket. Then
repeat the exercise if the price of a frame rises to $200, while the price of a wheel remains
$50.
a) The production function is Q = min(F, ½ W), where F denotes the number of frames and
W denotes the number of wheels.
frames
Initial Isocost Line:

200 $20,000
A 100 bicycle isoquant

100
Final Isocost Line:
$30,000
200 400 wheels 600
b) To produce 100 bicycles in the least costly manner, the firm always needs to choose
basket A, with 200 wheels and 100 frames.
Initially, when the price of a frame is $100 and the price of a wheel is $50, the isocost line is the
lighter one shown in the graph; all points on the isocost line indicate an expenditure of $20,000.
Later, when the price of a frame is $200 and the price of a wheel is $50, the isocost line is the
lighter one shown in the graph; all points on the isocost line indicate an expenditure of $30,000.
7.27. Suppose that the firm’s production function is given by Q = 10KL1/3. The firm’s
capital is fixed at K. What amount of labor will the firm hire to solve its short-run cost-
minimization problem?
With just two inputs, there is no tangency condition to worry about in the short run. To find the
short-run cost-minimizing quantity of labor, we need only solve the production function for L in
terms of Q and K :
1
Q = 10 KL3
This gives us:

Q3
L= 3
1000 K
This is the cost-minimizing quantity of labor in the short run.
7.28. A plant’s production function is Q = 2KL + K . For this production function, MPK =
2L + 1 and MPL = 2K. The price of labor services w is $4 and of capital services r is $5 per
unit.
a) In the short run, the plant’s capital is fixed at K = 9. Find the amount of labor it must
employ to produce Q = 45 units of output.
b) How much money is the firm sacrificing by not having the ability to choose its level of
capital optimally?
a) Since K = 9 , we get 18 L + 9 = 45 which implies that L = 36/18 = 2. Therefore the firm’s

total cost with this input combination is 4(2) + 5(9) = $53.
b) If the firm could operate optimally, it would choose labor and capital to satisfy the
2K 4
tangency condition: = , implying that 10 K = 8 L + 4. Also, 2 KL + K = 45 . Combining
2L + 1 5
these two conditions, K = 18 = 4.24 and L = 4.8. Now the firm’s expenditure would be 4(4.24)
+ 5(4.8) = $41 approximately. Therefore the firm loses about $12 because of its constraint on
capital.
7.29. Suppose that the firm uses three inputs to produce its output: capital K, labor L, and
materials M. The firm’s production function is given by Q = K1/3L1/3M1/3. For this
production function, the marginal products of capital, labor, and materials are MPK =
1/3K−2/3L1/3M1/3, MPL = 1/3K1/3L−2/3M1/3, and MPM = 1/3K1/3L1/3M−2/3. The prices of capital,
labor, and materials are r = 1, w = 1, and m = 1, respectively.
a) What is the solution to the firm’s long-run cost minimization problem given that the
firm wants to produce Q units of output?
b) What is the solution to the firm’s short-run cost minimization problem when the firm
wants to produce Q units of output and capital is fixed at K?
c) When Q = 4, the long-run cost-minimizing quantity of capital is 4. If capital is fixed at K
= 4 in the short run, show that the short-run and long-run cost-minimizing quantities of
labor and materials are the same.
a) Here we have two tangency conditions and the requirement that L , K , and M produce
Q units of output.

1
1 −2 1
MPL w K 3L 3M 3 1
=  3 1 1 −2 =  M = L
MPM m 1
3 K L M
3 3 3 1
1
1 −2 1
MPL w K 3L 3M 3 1
=  3 −2 1 1 =  K = L
MPK r 1
3 K
3
L3 M 3 1
1 1 1
Q = K 3 L3 M 3
This is a system of three equations in three unknowns. The solution to this system gives us the
long-run cost-minimizing input combination:
L=Q
M =Q
K =Q
b) The tangency condition MPL

MPM = w
m is
1
−2 1
1
K 3L 3M 3 1
3
1 = ,
1 3
1 − 32 1
3 K LM 3
which implies
M =L
To find the short-run cost-minimizing quantity of labor, we plug this back into the production
function and solve for L in terms of Q and K .
1 1 1
Q = K 3 L3 L3
which when we solve for L gives us the short-run cost-minimizing quantity of labor
3
Q2
L= 1
K2
Since M = L , the short-run cost-minimizing quantity of materials is

3
Q2
M= 1
K2
c) Plugging Q = 4 into the expressions for the long-run cost-minimizing quantities of labor
and materials gives us

L=4
M =4
Plugging Q = 4 and K = 4 into the expressions for the short-run cost-minimizing quantities of
labor and materials gives us
3
42 ( 32 − 12 )
L= 1 =4 =4
4 2
3
42 ( 32 − 12 )
M= 1 =4 =4
4 2
7.30. Consider the production function in Learning-By-Doing Exercise 7.6: Q = √L + √K +

√M. For this production function, the marginal products of labor, capital, and materials
are MPL = 1/(2√L), MPK = 1/(2√K), and MPM = 1/(2√M). Suppose that the input prices of
labor, capital, and materials are w = 1, r = 1, and m = 1, respectively.
a) Given that the firm wants to produce Q units of output, what is the solution to the firm’s
long-run cost minimization problem?
b) Given that the firm wants to produce Q units of output, what is the solution to the firm’s
short-run cost minimization problem when K = 4? Will the firm want to use positive
quantities of labor and materials for all levels of Q?
(c) Given that the firm wants to produce 12 units of output, what is the solution to the
firm’s short-run cost minimization problem when K = 4 and L = 9? Will the firm want to
use a positive quantity of materials for all levels of Q?
a) With three inputs, we need two tangency conditions to ensure that the marginal product
per dollar spent is equal across all inputs. (We could write down a third tangency condition, but
it would be redundant.) Equating the “bang for the buck” between labor and capital implies
1 2 L = 1 2 K or L = K. Similarly, equating the “bang for the buck” between labor and
materials implies 1 2 L = 1 2 M or L = M. Then using the production constraint to find the
input demand for labor yields Q = L + L + L or L = (1/3)Q2. Since L = M = K from the
tangency conditions, we also have K = (1/3)Q2 and M = (1/3)Q2.
b) First, note that with K = 4, the firm can produce up to Q = 0 + 4 + 0 = 2 units of

output without hiring any labor or materials. To produce more than Q = 2, the firm still balances
the marginal product per dollar spent on labor and materials; in part (a), we saw this implied L =
M. Substituting this and K = 4 into the production constraint, we have Q = L + 4 + L
which yields L = (1/4)(Q – 2)2 as the input demand for labor. Then L = M implies that the input
demand for materials is M = (1/4)(Q – 2)2. Therefore, the input demand functions are
 0 Q2
L(Q ) = M (Q ) =  1
 4 (Q − 2) Q  2
2

c) Again, with K = 4 and L = 9, the firm can produce up to Q = 5 units of output without
hiring any materials. Should it desire to produce greater levels of output, it can hire materials
according to Q = 9 + 4 + M , or M = (Q – 5)2. Therefore, the input demand for materials is
 0 Q5
M (Q ) = 
(Q − 5) Q  5
2
7.31. Acme, Inc. has just completed a study of its production process for gadgets. It uses
labor and capital to produce gadgets. It has determined that 1 more unit of labor would
increase output by 200 gadgets. However, an additional unit of capital would increase
output by 150 gadgets. If the current price of capital is $10 and the current price of labor is
$25, is the firm employing the optimal input bundle for its current output? Why or why
not? If not, which input’s usage should be increased?
The information in the problem tells us that MPL = 200 and MPK = 150 while w = 25 and r = 10.
So MPL/w = 8 < MPK/r = 15. Thus Acme could maintain its current level of output while
reducing costs by employing more capital and less labor. So it is not employing the optimal
input bundle.
7.32. A firm operates with a technology that is characterized by a diminishing marginal

rate of technical substitution of labor for capital. It is currently producing 32 units of
output using 4 units of capital and 5 units of labor. At that operating point the marginal
product of labor is 4 and the marginal product of capital is 2. The rental price of a unit of
capital is 2 when the wage rate is 1. Is the firm minimizing its total long-run cost of
producing the 32 units of output? If so, how do you know? If not, show why not and
indicate whether the firm should be using (i) more capital and less labor, or (ii) less capital
and more labor to produce an output of 32.
We have MPL/w = 4/1 = 4 > MPK/r = 2/2 = 1. Thus the firm cannot be minimizing its long-run
total cost. By employing more labor and less capital, it could maintain 32 units of output while
lowering total costs.
7.33. Suppose that in a given production process a blueprint (B) can be produced using
either an hour of computer time (C) or 4 hours of a manual draftsman’s time (D). (You
may assume C and D are perfect substitutes. Thus, for example, the firm could also
produce a blueprint using 0.5 hour of C and 2 hours of D.)
a) Write down the production function corresponding to this process (i.e., express B as a
function of C and D).
b) Suppose the price of computer time (pc) is 10 and the wage rate for a manual draftsman
(pD) is 5. The firm has to produce 15 blueprints. What are the cost minimizing choices of C
and D? On a graph with C on the horizontal axis and D on the vertical axis, illustrate your
answer showing the 15-blueprint isoquant and isocost lines.

a) Computers are four times as productive as draftsmen; an alternative way of saying this is
that MPC = 4MPD. Since C and D are perfect substitutes, we know the production function has
the form B = aC + bD, where a and b are positive constants. Thus we can write the production
function as B = C + (1/4)D. Note that this is consistent with generating one blueprint (B = 1)
from the following combinations of inputs: (C, D) = (1, 0), (C, D) = (0, 4), and (C, D) = (0.5, 2).
b) Notice that MPC pC = 1 / 10  MPD pD = 0.25 / 5 = 1 / 20 . That is, the marginal product
per dollar spent on computer time is always higher than the marginal product per dollar spent on
draftsman time. So the optimal input combination involves D = 0 and C = 15. The graph below
illustrates the (dotted) isocost lines with slope = –pC / pD = –2, along with the (solid) B = 15
isoquant with slope = –MPC / MPD = –4.
D
B = 15 isoquant
60 slope = –4
Isocost lines
slope = –pC / pD
= –2
15 C
7.34. This problem will enable you to apply a revealed preference argument to see if
a firm is minimizing the total cost of production. The firm produces output with a
technology characterized by a diminishing marginal rate of technical substitution of
labor for capital. It is required to produce a specified amount of output, which does
not change in this problem. When faced with input prices w1 and r1, the firm chooses
the basket of inputs at point A on the graph below, and it incurs the total cost on the
isocost line IC1. When the factor prices change to w2 and r2 the firm’s choice of
inputs is at basket B, on isocost line IC2. Basket A lies on the intersection of the two
isocost lines. Are these choices consistent with cost minimizing behavior?
IC1
B
IC2

Since the firm’s production remains unchanged, it must be producing the same level of
output at both points A and B. That is, the isoquant through A also passes through B.
Now, suppose that the firm is minimizing costs at point B. Then the isoquant through B is
tangent to isocost line IC2 . Since we are told that the MRTS is diminishing, there is no
way the isoquant passing through B can also pass through A. You can see this easily from
the graph. And you can also reach this conclusion using the property that a line tangent to
a curve does not intersect the curve at any point other than the point of tangency.
Similarly, if the firm were minimizing costs at A, then isocost line IC1 would be tangent
to the isoquant; but then it would be impossible for isocost line IC2 also to be tangent.
Thus, it is not possible for both A and B to be cost minimizing input combinations.

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trousers, boots, and a Natal Police (European) helmet, no doubt
belonging to one of the men killed on the preceding Wednesday. A
large ammunition belt was buckled round his waist, with a bandolier
containing cartridges over the right shoulder. He also carried a
modern rifle.
His men, of comparatively small build, dark and thickset, had for the
most part, white ostrich feathers in their hair, plucked from a
European-owned bird wilfully done to death by them in their ward just
before their flight. They wore the ordinary Native attire, including
tshokobezi badges,[163] and each carried assegais, together with a
large ox-hide shield. In their possession were eight guns, viz.: three
magazine rifles, one Martini-Henry rifle, one double-barrelled gun,
and three old muskets.
A black and white cow was soon observed being driven forward. This
was presented to Bambata. The significance of the gift was that the
Chief, acting on behalf of the tribe, regarded Bambata as a friend and
desired to extend hospitality to him in the manner most approved by
Native custom. It was now arranged that one of Bambata's men
should shoot it. Two shots were fired, but the animal remained
unharmed. Indeed, it had been intimated beforehand to those near by
that, although fired at, the beast, because of having been charmed by
Bambata, would not fall until Bambata himself had fired. True enough,
on his taking the rifle and firing, it dropped dead, and rolled down the
incline on which it had been standing. "A marvel! a mystery!"
remarked the surprised on-lookers. "Clearly Bambata must be in
possession of some wonderful charm!"[164] The animal was now
skinned and consumed by the men from Mpanza.
Two messengers, who had been sent by Sigananda to the
Commissioner, now arrived on the scene. They were taken aside by
the Chief with a few others, when one of them reported that Mr.
Saunders, on hearing of Sigananda's inability to find Bambata, had
said he would not keep on sending messages, as it was absurd to
suppose the outlaw's whereabouts could not be ascertained; he was
known to have come into the midst of kraals, whose occupants,
having feet, could detect with ease a track made by a couple of men,
how much more that by a hundred, as well as a couple of horses![165]
The Commissioner had also alluded to an upstart, Sitimela; to this
man reference will be made further on.
All were now directed to move towards where Sigananda and his
party were sitting, and there "to march together through one gate."
This, however, was merely a metaphorical expression, there being no
actual gate at the place. The expression had reference, as everyone
at once guessed, to certain two Basuto doctors engaged, not many
yards off, in preparing decoctions of various drugs called izintelezi.
[166] The meaning was that the men were all to walk past the doctors
for the purpose of being treated in accordance with custom, in
anticipation of coming warfare. There was a small fire close by, from
which a large amount of smoke was ascending. The smoke was
caused by green branches and leaves being burnt with a fatty
substance thrown in by the medicos. The order was that Bambata's
men should move off first in twos, followed by Ndube's and
Sigananda's men in like formation. When the first two came to the
fire, they trod lightly in it, the man on the left with his right foot, and
the one on the right with his left. In so doing, they passed through the
smoke. Without halting, they passed slowly by the doctors, when they
were simultaneously sprinkled by one of these by means of two black
small brushes, apparently gnu-tails (one in each hand), previously
dipped in a huge earthen-ware pot containing some caustic
decoction. The men were told that they should not, after the
sprinkling, rub their bodies with fat, as usual with Zulus, nor should
they wash. Moving on, the leading couple came to the second doctor,
who lifted to the mouth of each a ladle containing a different liquid,
drawn from a pot on the ground at his side. Each warrior was
instructed to take a mouthful, not to swallow, but to keep in his mouth
until further directed. Similar procedure was followed in regard to
every couple, until the whole impi had been dealt with.
After marching past, the men formed up in one large irregularly-
shaped body, some hundred or so yards further on. What is known as
an umkumbi or circle was now ordered to be formed,[167] when
Sigananda, accompanied by Mangati and one or two of his leading
councillors, entered the ring. Bambata stood apart in front of, but
close to, his own men, who also formed part of the enclosure.
Everyone remained standing, including the ninety-six-year-old Chief.
The last-mentioned addressed the gathering in these terms: "The
drugs which have just been used on and about you all have the
power of preventing bullets fired by Europeans from entering your
bodies or doing injury of any kind. But there will be immunity only on
certain conditions, which are that you abstain from womenfolk, and
that you lie down to sleep, not on mats, but on the bare ground.
Anyone who ignores these directions will render himself liable to
injury or to be killed. From to-day, I have resolved to take up arms
against the white man! The pass-word and countersign to be used
when you happen to meet and interrogate others, especially at night,
is 'Wen' u tini?' (= You, what do you say?); the one addressed must
then reply, 'Insumansumane!'" (= It's all tomfoolery!) After Sigananda
had spoken, a Christian teacher named Paula endorsed what the
Chief had said, laying stress on the efficacy of the drugs. "I have left
my wife behind," he added, "also a waggon and oxen in Mpanza
valley. Why did I come away? Because I had made up my mind to
fight. The Government is casting aside its right of sovereignty and
giving the same over to us. Here (pointing at them) are my tribesmen!
These men will never turn back now, but will go resolutely forward.
Once angered, they are implacable and continue long in their wrath."
A man, Mmangwana, one of those who had just come from the
Commissioner, next mumbled, with the liquid he had sipped still in his
mouth: "I cannot accept the assertion that anyone, on being struck by
a bullet, will not be hurt or that a bullet will not enter. I never heard of
such a thing. Is, then, a man's flesh made of iron? Did not a certain
outlaw[168] not long ago find his way into the Umtetwa tribe and there
bring about the ruin of a whole country-side? Did he not declare that,
if the Europeans came to attack him, they would be stung by bees
and wasps, and be bitten by snakes? And when they (Europeans) did
come, were not many innocent people destroyed by the white people,
whilst this fellow escaped scot free?"
The keeper of Cetshwayo's grave here remarked, also speaking with
great difficulty, his mouth half-full of the talismanic draught, "How
comes it, in these days, that when the King[169] sees fit to direct
anything to be done, a lot of people come forward with all sorts of
observations and criticisms? Who ever heard of presumption of this
sort in former times?"
On the ring now breaking up, the whole party was led by Mangati to
the top of the nearest mountain-top (Ndundumeni). Here they were
told to cinsa, i.e. vigorously and defiantly spirt the charmed water
from their mouths towards the objects of their wrath, shouting as they
did so, Íwa Kingi! Íwa Mgungundhlovu! Íwa Mashiqela! (May the King
fall![170] Fall, Pietermaritzburg! Fall, Saunders!) Everyone having
uttered these imprecations, came down the hill and, the mist coming
on, the gathering dispersed, with orders to meet on the following
morning in the neighbourhood of the grave.[171]
When the rebels met as arranged, accompanied by Bambata, they
erected other amadhlangala or temporary shelters of wattles and
branches. Later the same day, probably the 16th, a body now
between 700 and 1,000 strong, with Bambata and Mangati in
command, marched up the ridge at the rear of Enhlweni towards
Nomangci, with the intention of attacking the magistracy, or any of the
small patrols that were then being sent out daily. Sigananda, hearing
of this, ordered Bambata to desist until the messengers sent by him
to Dinuzulu a couple of days before (to obtain confirmation of
Cakijana's communication to Mangati regarding Dinuzulu's alleged
wishes) had been received. Bambata returned to the grave, where he
continued to camp undisturbed for at least a fortnight.
The decision of Sigananda to rebel is surprising when one considers
that his district is one of the healthiest and most fertile in Zululand. In
many respects it is an ideal place to live in, especially for Natives. Far
from the larger European centres, it has an abundance of firewood,
wattles, etc., and is, moreover, peculiarly favourable for raising stock.
All these advantages became of no account as soon as the blighting
word arrived from the royal house that Bambata was to be
befriended. Dinuzulu's pleasure first, everything else nowhere. That
was the sole cause of this remarkable defection. It can be explained
in no other way. Where is the witchery that can be compared with
this?
Between the 15th and 23rd, Sigananda sent messages to many
neighbouring loyally-disposed Chiefs, urging them to rebel. Although
a number of malcontents threw in their lot with the rebels, including
members of the tribe of Siteku (Dinuzulu's uncle) and Chief Gayede
(of Natal), the majority of the people remained loyal or neutral.
Several, as far off as Mahlabatini, went further and offered their
services to the Government against Bambata and Sigananda.
Two or three stores, close to the forests, were looted during this
period (that at Sibudeni, as early as the 16th), besides cattle
belonging to loyalists.
The two messengers that had been sent to Dinuzulu got back on the
evening of the 23rd. Unfortunately, there was a difference between
them as to the purport of 'the Prince's' message. One man, the
senior, said Dinuzulu had denied all knowledge of Bambata's doings,
and had remarked: "they have already begun fighting; let them do just
what they want, it is no affair of mine. I do not want to be mixed up in
the business." The other man, agreeing whilst in Sigananda's
presence, afterwards went among the rebels and encouraged them
by declaring that Dinuzulu's real wish was that they should fight the
white man. The construction put on the communication by the latter
messenger was that which, readily finding favour, was accepted.
These men, moreover, had heard of the Government having arranged
with Dinuzulu on the 17th to allow Mankulumana to go and act as
"peace-maker," a matter that will be noticed later. The second
messenger interpreted Mankulumana's mission into his having been
"bought by the Europeans"; his coming, therefore, was simply to try
and hoodwink Bambata.
Mankulumana arrived at Empandhleni on the 23rd, and after
interviewing the Commissioner for Native Affairs, proceeded, on the
following morning, to see Sigananda.
FOOTNOTES:
[144] Gabangaye, with a large following, formed a portion of the
Native contingents that assisted the Imperial troops.
[145] These men had received orders to mobilize only the morning
before.
[146] The Reserves, with part of the U.M.R., one Maxim
detachment, and one field gun, passed the night at Wintershoek;
the Police, with one troop U.M.R. and Maxim detachment, camped
at Botha's quarries.
[147] See "The Causes, Superstitions and other Characteristics of
the Matabele Rebellion, 1896." Appendix X.
[148] Ntshelela is one of the many younger sons of Godide, son of
Ndhlela, one of Dingana's two principal indunas. Ndhlela was one
of the two indunas in power when Piet Retief and his party were
massacred at Mgungundhlovu in 1838.
[149] By this time, Cakijana had temporarily detached himself from
the force.
[150] The Magistrate specially appointed to try the case, took a
surprisingly lenient view of the matter. What had occurred was
this: The Chiefs of the district were directed to bring their people to
pay the poll tax. All, to begin with, were nervous and averse to
paying until Sitshitshili came forward in the presence of the others
and made his tribe pay, remarking, as he did so, that, having
always obeyed the Government, he was not going to be afraid of
doing so on that occasion. Other Chiefs then followed the
example. Sigananda's people, of whom about 200 were present,
declared they had no money and could not pay. When told that, as
such was the case, they might go home, they "rushed up to the
court-house fence brandishing their sticks, shouted out their tribal
war-cry Yayize!" and began to dance in a defiant manner (giya)
within the precincts of the court-house, action which at once
terrified all the Native police, as bloodshed appeared to them to be
imminent. No physical violence, however, occurred.
[151] Cd. 3027, p. 31.
[152] These forests are very extensive and difficult of access when
approached from Natal. They are mainly on the eastern slopes of
Qudeni mountain, and about twenty miles from those of Nkandhla.
Bambata, however, does not appear at any time to have had them
in view.
[153] Enhlweni, from inhlwa, a poor or indigent person, may be
rendered the pauper's retreat, no doubt in allusion to the 'destitute'
condition Cetshwayo found himself in on his return from exile,
—'destitute,' that is, as compared with his former affluence and
popularity.
[154] This man Muntumuni was later on shot in the Mome valley
whilst climbing one of the steepest parts of the gorge. He was fired
at many times, being in an exposed position. On being hit, he
rolled to the foot of the mountain from a height of over 1,200 feet.
[155] Besides 182 N.P., 92 Z.N.P., 106 Z.M.R. and 20 civilians,
there were 30 women and children at Empandhleni.
[156] This regiment got orders to mobilize on the 17th April. The
orders applied to the Left Wing and 150 men of the headquarters
squadrons (Right Wing). The latter section (under Captain E.W.
Barter), joined the Left Wing at Dundee, the whole force being
taken command of by Lt.-Col. D.W. Mackay. The remainder of the
Right Wing, with the exception of D squadron, mobilized on the 1st
May and proceeded to Helpmakaar under Lt.-Col. J. Weighton,
who then took command of the regiment. D squadron was
mobilized in June, and, as will be seen later, accompanied B.M.R.
first to Dundee, then to Mapumulo where, until the arrival of
Mackay's column early in July, they formed part of that of
Leuchars. The total strength of the regiment was 918 (all ranks),
including special service men, i.e. the largest volunteer corps
Natal had ever placed in the field.
[157] Well armed, especially from Sigananda's point of view.
[158] The position, at the time, seems to have been this: As soon
as Bambata, fleeing from Mpanza, was known to have entered
Zululand, the local authorities applied the principle of communal
responsibility, under which every Chief and his adherents became
bound to co-operate with Government officials (if any) and one
another in apprehending the fugitive. No Government officials
being available on the spot at the outset, Chiefs were expected to
assist one another. When, however, instead of running from district
to district, Bambata made for the Nkandhla forests and there
concealed and established himself, it devolved, under Native law,
on Sigananda to make the arrest if he could. Mr. Saunders
regarded this Chief as able to at least drive the rebels out of the
forests by a process of starvation. Hence, qualification of the first
order, by Chiefs in general being no longer required to assist
Sigananda, but being held responsible merely for arresting
Bambata should he escape to or through their respective wards.
[159] Commissioner for Native Affairs to Prime Minister, 28th April,
1906. Cd. 3027, p. 32.
[160] Commissioner for Native Affairs to Prime Minister, 28th April,
1906. Col. 3027, p. 31.
[161] Had van Rooyen's Reserves been retained, the aggregate
would have been over 400.
[162] Van Rooyen and Vanderplank reached Empandhleni at 6
a.m. and 6.45 p.m. respectively on the 9th, whilst Mansel got to
Middle Drift at 4.30 p.m. on the same day.
[163] These were simply the bushy part of ox- or cow-tails of white
hair or white and red mixed, with the skin cut so as to enable them
to be bound round the head. They were arranged so as to stand
erect, lie on the head (front to back), or fall from the back part of
the head on to the neck. They were also tied round the neck so as
to hang down the back. No one was required to wear more than
one. As the wearers ran, the 'tails' continually bobbed up and
down,—done possibly with the object of inspiring the enemy with
fear.
[164] The explanation is that blank cartridges were used for the
first two shots.
[165] Bambata and at least one of his men rode horses.
[166] Charms for warding off evil. Different ones are used
according to the character of the evil to be averted.
[167] That is, the men drew up in this formation.
[168] The speaker referred to Sitimela, a notorious upstart, whose
example had been quoted by Mr. Saunders, and of which fact
Mmangwana had just told Sigananda privately as above related.
[169] A hyperbole. The reference is to Dinuzulu.
[170] That is, the King of Great Britain and Ireland.
[171] Cetshwayo's grave.
IX.
THE NKANDHLA FORESTS.—SIGANANDA AND HIS TRIBE.—
DINUZULU'S ATTITUDE.—EARLY OPERATIONS AT
NKANDHLA.—MURDER OF H.M. STAINBANK.
Some account is now necessary of the locality within which the rebel
bands took refuge, shortly to become the focus of more than a
month's operations by some 2,000 European troops and a like
number of Native levies.
The name Nkandhla is probably derived from the verb kandhla,
meaning "to tire, exhaust, or prostrate," and is applied collectively to
the various great and more or less connected forests that clothe the
mountains, spurs and valleys of that part. The area in question, as
will be seen from the map, is about eleven miles long by five broad.
Separate names are given to about ten of the forests, among them:
Dukuza (wander about), Elendhlovu (the elephant one), Elibomvana
(the little red one), and Kwa Vuza (the dripping one). The slopes of
the mountains are remarkable for their steepness, especially when
approached from the low ground in the vicinity of Cetshwayo's grave.
The altitude of the slopes, of course, varies, but the steepness is
practically uniform, whether the height be 2,000, 3,000, or 3,500 feet.
The bed of the Insuze River, from the Tate to the Halambu, would
average about 1,100 feet—where the Mome enters the Insuze, it is
1,122. In many parts, the peaks and ridges rise to a height of 1,500 to
2,000 feet from the nearest stream bed, and within a distance of less
than a mile, measured from the foot of the perpendicular.
Three streams flow through the forests into the Insuze, viz.: Mome,
Nkunzana, and Halambu, and, of these, the Nkunzana traverses the
heart or densest part of the forests.
The principal forest, as well as the deepest and darkest, is Dukuza,
no doubt deriving its name from the fact that one is liable to lose his
way therein and go wandering about unless acquainted with the
secret that, to find his way, he must climb the nearest ridge to see in
what direction to make.[172] The trees are not, as a rule, higher than
sixty feet, though, near the bottom of some of the gorges, they rise to
seventy and eighty. Generally speaking, there is but little
undergrowth, and the trees stand rather wide apart. Here and there a
precipice or donga is met with.
Notwithstanding the sharp ascent so characteristic of Nkandhla
ridges and spurs, comparatively few stones or boulders are to be
found. The ground is covered with damp, decaying substances, such
as leaves and branches; here and there, especially along the beds of
streams, are to be seen moss-covered, slippery rocks, ferns and
monkey-ropes, all tending to give an impression of the immense
antiquity and majesty of the forest. Beautiful glades, varying in size
and shape, are suddenly come upon in parts, with all the freshness
and evenness of some lowland meadow. A look-out must be kept for
snakes, such as rocky cobras, mambas and puff-adders. Leopards
are also to be found. Of birds, lories, red-necked partridges and
eagles will frequently be seen. And superstitious people will be
interested to know that ghosts have, for generations, haunted and are
said still to haunt the dense, precipitous forest Eziwojeni, immediately
below Sigananda's kraal "Enhlweni."
Above and at the rear of the Mome waterfall (which has a drop of fifty
feet) is a natural stronghold, the one used by Cetshwayo in 1883.
Owing, however, to a feeling of insecurity, especially on account of
the presence of artillery, the rebels did not use it in 1906, they
preferred to take refuge in the Mome gorge and the adjoining forest-
covered valleys. A favourite, though unhealthy hiding-place, is in the
vicinity of Manzipambana (a tributary of the Nkunzana), which never
issues into open daylight. The peculiar vagaries of its course, which,
in parts, seems to proceed one way and then in exactly opposite
direction, are ascribed to perverse and occult powers emanating from
the still and sombre forest depths.
The Mome gorge, to be often referred to later, takes its name from a
stream that flows through it. It is about one and a half miles long, with
great mountain walls on either side. At the head of the valley is the
waterfall already referred to. Near the fall, the ground rises on either
side to an altitude of over 3,000 feet, but at the mouth of the valley
drops away with remarkable suddenness. Within a radius of 200 to
300 yards of the fall, the earth is covered with a dense forest which,
extending outwards on either side, connects with the various other
forests referred to above, especially on the east. A couple of isolated
forests are to be seen within the valley, particularly the Dobo or 'pear-
shaped' one on the west near the mouth. So steep are the sides of
the gorge, like the letter V, that the sun in the morning and afternoon
is shut out to such an extent that the day appears to be considerably
shorter than it is.
Altogether the Nkandhla, with the Mome gorge as practically the key
of the position, could hardly be surpassed as a place of refuge. Nor
could the beauty and attractiveness of the district as a whole be
easily excelled. There is a cleanness and definition as well as natural
grandeur about Nature's handiwork hereabout that immediately
appeal to the imagination. The purity and coolness of the air are
exhilarating, so much so that one becomes oblivious to the cares of
life as he wanders about the woodlands, toils up the sharp ascents,
or bends over one of the many brooks to regale himself with some of
the clearest crystal water to be found on the face of the globe. The
Nkandhla should never become a field of war, and anyone who visits
it will realize the pettiness of man's strife which, for a moment,
disturbs its awe-inspiring stillness, and gentle, peaceful slumber.
The history of the tribe that lived about these forests, and especially
its relationship to the royal house of Zululand, are naturally matters of
greater interest. Called by some amaCube, by others amaNcube, the
tribe is a Lala one,[173] closely related to that of Butelezi, to which
Mnyamana, son of Ngqengelele, belonged. Mnyamana was
Cetshwayo's prime minister, whilst Ngqengelele was the great
Tshaka's guardian, adviser and friend. Mnyamana, subsequently to
the Zulu War, became unequivocably loyal to the British Government,
and, on more than one occasion, publicly dissociated himself from the
acts of Cetshwayo, as well as of his successor Dinuzulu. This
detachment was maintained during the Rebellion by his son
Tshanibezwe, a fact which had no small influence in restraining and
even checkmating Dinuzulu. The history of these sister tribes during
the last thirty years is remarkable in that, whilst the Butelezi was
unquestionably loyal to the Imperial Government, the amaCube was
persistently sullen and disloyal. In other words, Butelezi threw in its
lot once and for all with its acknowledged conquerors, in opposition to
the rebellious tactics followed by Cetshwayo and Dinuzulu, whilst the
amaCube declared as resolutely in favour of the royal house, though
embarked on a mad career after palpably impossible goals.
The year in which Sigananda's ancestors first came to settle in the
neighbourhood of the forests is wrapped in obscurity. Natives have no
good means of fixing time, especially in regard to events more than a
century old. One of the best methods, indeed about the only one, is to
ascertain the Chief's genealogical tree, the whereabouts of former
Chief's graves, etc., and, from these and related facts, draw such
inferences as appear reasonable. In the case of Sigananda, the
known positions at Nkandhla of the graves of six of his ancestors,
enable us to conclude with tolerable certainty that the first Chief died
about 250 years ago.
Tradition seems to carry the arrival of the people still further back. It is
safe to say it is one of the oldest tribes in Zululand and was already
long in situ when the migration of the great Xosa family to Cape
Colony took place in the seventeenth century.
Although Tshaka attacked and defeated many tribes, he was unable
to conquer that over which Mvakela, grandfather of Sigananda,
presided. Later, however, he succeeded in putting Mvakela to death.
This man took refuge in the Manzipambana section of the forests. It
proved so detrimental to his health that he was obliged to leave and
expose himself, thus affording the enemy an opportunity of which
advantage was swiftly taken.
It so happened that Mvakela had married a sister of Nandi, Tshaka's
mother. Mvakela's son, Zokufa (father of Sigananda), was thus
Tshaka's first cousin. This connection with the royal house of Zululand
plays a most important part in regard to the Rebellion. It shows the
character of the blood relationship between Dinuzulu and Sigananda.
Zokufa was allowed to become Chief. The tribe continued, as in
former ages, to practice the art of iron-smelting, and the manufacture
of hoes, axes, knives and assegais of every shape and size. Owing to
special aptitude in these respects, the people were largely patronized
by the King who, from time to time, called for supplies of the articles
manufactured. The national army depended to no small extent on the
assegais made by the tribe, which came to fill much the same kind of
place in the body politic that Woolwich arsenal does in England.
Large quantities of the domestic articles referred to were, moreover,
bartered to the general public far and near. When the white man
arrived in 1824, and, in the years that followed, introduced hoes, axes
and knives, the demand for more serviceable wares soon caused this
once famous handicraft to die out. But, although the Zulus were
content to use European hoes (which were lighter and cheaper), and
axes and knives (which were harder and sharper), they never lost
faith in their own smiths for the making of assegais and other
implements of war. To this day the assegai forged in Birmingham has
been unable to supersede that of the ordinary Native blacksmith who,
in these days, is not above using European pig-iron, instead of
smelting his own with those quaint old bellows of his from the
ironstone so frequently to be met with. Sigananda himself was an
excellent smith, his reputation for barbed, large stabbing, as well as
throwing, assegais being by no means confined to members of his
own tribe.
In Cetshwayo's day, we find Zokufa holding the position of induna at
that Prince's Mlambongwenya kraal. It was there that the famous
Usutu party was first created by Cetshwayo. The Usutu became his
personal adherents in opposition to the Izigqoza of the rival claimant
to the throne, Mbuyazi. The party was made up of men from many
tribes, and not recruited merely from the Zulu one, of which its leader
was a member. Zokufa, and after him Sigananda, together with the
amaCube tribe, belonged to the Usutu faction. Sigananda accordingly
fought on the Usutu side during the great Ndondakusuka (Tugela)
battle on the 2nd December, 1856.
Shortly after, owing to disturbances in the tribe, Sigananda fled to
Natal. He took refuge in the tribe of Mancinza, father of Bambata. He
became a policeman at the Magistrate's office, Greytown, but, about
1871, was invited by Cetshwayo to live in Zululand, when, after
fourteen or fifteen years' absence, he became Chief over the tribe.
During the Zulu War, Sigananda naturally fought for his King.
Cetshwayo's restoration to Zululand occurred in January, 1883, and,
as has been seen, was the signal for violent conflict between his and
Zibebu's forces. Cetshwayo was obliged to find a place of refuge. He
fled to the Nkandhla forests, where he was harboured in one of the
amaCube kraals immediately overlooking the Mome waterfall. A small
kraal, known by the name of Enhlweni, was constructed for the ex-
King's use on the eastern side of the waterfall, and only three
hundred yards from it, whilst a covered path was specially made
through the forest that stood between the two kraals. The
Government succeeded, through the influence of Mr. Henry F. Fynn
(son of the earliest pioneer of Natal), in inducing Cetshwayo to leave
his place of hiding and reside at Eshowe, and there he died in 1884.
Owing to the unsettled state of the country, it was decided by the
heads of the nation that Cetshwayo should not be buried on the
banks of the White Umfolozi, where it had for generations been the
practice to inter the kings. The district in the occupation of the
amaCube was the one selected, whereupon he was conveyed there
in an ox-waggon and 'planted,'[174] near the Nkunzana stream, on a
small exposed ridge about three miles to the east of Mome gorge. A
relative of Sigananda was appointed keeper of the grave, a post of
much responsibility and honour. One of his kraals was erected on a
knoll some 500 yards from his charge.[175]
In the battle of Kotongweni in 1884 between the Usutus, on the one
side, and the Government forces, Basutos and other Natives loyal to
the Government, on the other, Sigananda threw in his lot with the
former. Finally, in 1888, when Dinuzulu once more waged war against
Zibebu, Sigananda was called on by the Government to furnish a
levy. He refused, subsequently reviling a few more loyally disposed
members of his tribe for breaking away and assisting the authorities.
Such, in brief, was the history of the man and tribe with which the
Colony had now to deal. In 1905, the tribe was wholly within the
Nkandhla magisterial district; it consisted of 462 kraals, with an
approximate total population of 4,300, or about 700 men capable of
bearing arms.
Another factor in the situation was the Chief's great age. There has
been some uncertainty in regard to the point, some maintaining he
was as much as 105, but, when it is borne in mind that he was a
member of the Imkulu-tshane regiment, the cadets of which were
recruited about 1830, and that these were about seventeen or
eighteen years old when recruited, his age could not have been more
than ninety-five at the time of the Rebellion, if quite so much.
It has already been shown that the Magistrate and the Commissioner
at Empandhleni placed themselves in immediate communication with
Sigananda, who, however, hypnotized by the prospect of co-
operating with his old King's son, deliberately ignored all the orders
received by him.
When the Commissioner became convinced (as he did on 16th April)
that Sigananda had thrown in his lot with Bambata and was in open
rebellion, in conjunction with sections of adjoining tribes, he
represented the situation as very serious, and urged the immediate
concentration within Natal of a large Imperial force, partly to
compensate for the imminent withdrawal of local troops to cope with
the Rebellion in Zululand, and partly to counteract a rumour that was
circulating to the effect that the Imperial Government, disapproving of
what had taken place, would not assist the colonial forces. Mansel
advised the taking of similar action. The Ministry, however, deemed it
expedient to deal with the situation as far as possible from Natal
resources alone and, if it proved beyond the Colony's capabilities, to
appeal for assistance to other portions of South Africa. "Fears having
been expressed," says the Governor, "that if the Active Militia as a
whole left for Zululand, the Natal tribes, who were still in a state of
unrest, might possibly rise, and that the Reserve Militia were
insufficiently organized to deal with them, it was determined to raise
immediately a Special Service Contingent of mounted men under the
command of Lieut.-Col. J.R. Royston, C.M.G., D.S.O.[176] ...
Detachments of Infantry were sent to garrison Gingindhlovu and
Eshowe, in order to keep open lines of communication viâ Fort
Yolland."[177] At the same time, a reward of £500 was offered for the
capture, dead or alive, of Bambata, and £20 in respect of each of his
followers. This reward, intended to stimulate Natives whose loyalty
was not assured, was, however, withdrawn before the end of April, on
account of the considerable number of Europeans then being put in
the field.
In raising the Special Service Contingent, known as "Royston's
Horse," Royston was debarred from recruiting members of the Active
Militia force. After advertizing in the local press, numerous
applications were received from all parts of Natal and the rest of
South Africa, with the result that the corps reached its full
complement (550) within ten days, hundreds of applications having
had to be refused. The great majority of the men came from
Johannesburg, Durban and parts of the Cape Colony. Much difficulty
was experienced in selecting officers, as also in obtaining clothing,
boots, saddles, etc., as the Militia Department had very little in stock,
except arms and ammunition. The corps being a mounted one, it
became necessary for Royston to use the powers given him under
martial law to commandeer horses where the owners refused to sell.
Dinuzulu's attitude, ever since the outbreak at Byrnetown, and,
indeed, for months before, had, as has already been related, been
regarded by many with suspicion. Such, however, was not the view of
Mr., now Sir Charles, Saunders, who emphasized in one despatch
after another his implicit belief in the Chief's loyalty and complete
detachment from the rebellious proceedings at Nkandhla. The opinion
of such an officer naturally carried great weight throughout Natal and
Zululand, as it was commonly known he was not only an
exceptionally competent Zulu linguist, with a life-long acquaintance
with the Natives, their habits and customs, but had held important
official positions in Zululand ever since the beginning of 1888, and
these, especially during the preceding ten years, had brought him into
frequent personal contact with Dinuzulu. Many were swayed by this
testimony, fortified as it was by the fact that Mr. Saunders had just
been on a visit of a day and two nights to Usutu kraal, having left
there on 7th April, after communicating to Dinuzulu and his indunas
the news of the disaster at Mpanza.
The Government, on the 17th, decided on the course reflected in the
following telegram to the Commissioner: "Absolutely necessary that
Dinuzulu should take some action to show his loyalty, of which you
say you are assured. All information goes to show that Natives
believe he is concerned in movement, and he must be made to show
his hand." Dinuzulu was communicated with accordingly. The same
afternoon, the Government asked if the Commissioner thought it
advisable to order Dinuzulu and Mciteki[178] to come to
Pietermaritzburg to assist in advising as to affairs in Zululand, and
whether some other powerful Chief might be told to come as well.
The Commissioner replied it would be fatal at that juncture to order
Dinuzulu or the others to Pietermaritzburg. "Situation is most delicate
and critical at present and requires the presence of any loyal Chiefs
we can depend on amongst their own people."
Almost simultaneously with the announcement of Sigananda having
joined Bambata, the following message was sent to Mr. Saunders by
Dinuzulu on the 18th, in reply to that from the Government of the
preceding day: "I am not surprised that the Natal Government should
have doubt as to my loyalty in face of repeated and constant
accusations to the contrary effect which have been levelled against
me throughout South Africa. I can only say I am perfectly loyal and
am most anxious to give proof of this in any way the Government
may wish. I have assured you of my loyalty by words and actions
repeatedly, but apparently this is doubted, and I now ask that
Government suggest means by which my loyalty can be proved
absolutely, and finally dispel the slurs which have been cast upon me,
and which I keenly resent. I am perfectly ready to turn out the whole
of my people, and send them to Nkandhla at once to operate in any
manner you may think fit, either in entering the forest and capturing
this dog Bambata, who has been allowed to enter Zululand and
disturb the peace which we enjoyed long after Natal Natives had
openly shown disloyalty. As you know, I am physically incapable of
leading my people in person, being unable to move with freedom
from my bed, but the impi would go down in charge of my chief
induna, Mankulumana, and I myself am prepared to be conveyed to
Nongoma and remain there alone with the Magistrate, whilst my
people are operating in any way they may be required as a proof of
my good faith in this matter. If Government say they wish me to go to
Nkandhla, I will find means to reach there, notwithstanding the state
of my health. If this assurance is not sufficient, I am sure that
Government will indicate what is necessary for further proof of loyalty
to our King."
When this message was received it was communicated to the press
and, being naturally given great prominence, had a reassuring effect
far and wide; so much so, that the end of the Rebellion appeared to
many to be in sight. Little did anyone suppose at the time that this
communication, to all appearance brimming over with the deepest
loyalty and affection, had issued from one who was actually
committing high treason at the moment he sent it.
The Government, most fortunately dissuaded by Mr. Saunders,
decided not to accept the offer of a levy. Such, by the way, could not
have exceeded 500 or 600 men. To have accepted, however, as was
pointed out at the time, would not only have attracted to it thousands
of Zulus from every part of the country, as well as from beyond its
borders, but the very movements of such concourse as would have
assembled would have caused a recrudescence of the alarming
rumours and unrest of which the Colony had already had a surfeit,
the net result of which would have been to greatly augment
Bambata's forces, if Dinuzulu and 'his army' did not themselves join
en bloc. The Commissioner was opposed to Dinuzulu being so called
on, not because he doubted the Chief's loyalty, but, as he wired on
the 19th, because "the country is in such a nervous state that if his
people once commence to arm, people would flock to join him from
all parts. This would not only cause a general panic, but would be
made the greatest capital of by Bambata as absolute proof that
Dinuzulu was arming to join him." At this time, moreover, Dinuzulu
was in a somewhat poor state of health, "being enormously stout and
suffering apparently from some dropsical and cutaneous disorder,
which completely incapacitated him for any physical exertion."
That the Government was not satisfied with Dinuzulu's passive and
neutral attitude is seen from the fact that, on the 16th prox., the
Commissioner was asked if he was still of opinion it was inadvisable
to employ that Chief's men. In reply, Mr. Saunders adhered to the
view already expressed.
Instead of requiring Dinuzulu to go to the magistracy as suggested by
himself, it was arranged Mankulumana should proceed to Sigananda
to ascertain what was his attitude towards the Government, as well
as to inquire pointedly by whose authority the rebels were being
massed at Nkandhla. He was, moreover, to deny that Dinuzulu was in
any way an instigator of what had occurred at Mpanza.
Mankulumana, as has been seen, reached Empandhleni on the 23rd,
and, after ascertaining from Mr. Saunders what message he was to
deliver, moved on to see Sigananda at Nkandhla forests. He returned
on the 26th to report he had been received by the rebels in a hostile
spirit, being precluded by their leaders from meeting the Chief, and
that he had made it as generally known as possible that Dinuzulu was
not associated with Bambata.
The Magistrate of Eshowe proceeded on the 20th to the
neighbourhood of Fort Yolland, where he met three important Chiefs
of that part with their followers. These begged the Government to
send a force to protect them against raids that were being made by
Bambata and Sigananda's impis. The Chiefs were told a force was
coming and directed, in the meantime, to arm and defend
themselves.
On the night of the 23rd, intelligence was received that Bambata was
in the vicinity of Ntingwe; Mansel thereupon made a night march with
the Police and Z.M.R. over the worst imaginable country, so steep as
to be dangerous for man and beast. The sortie, however, proved
unsuccessful.
The convoy of waggons, escorted by the Natal Carbineers, under
Mackay, consisting of the Left Wing, three squadrons of the Right
Wing, and a section of B Battery, N.F.A.—400 all told, arrived at
Empandhleni at mid-day on the 25th, having left Dundee on the 20th.
They had travelled viâ Vant's Drift, Nqutu, Nondweni and Babanango.
[179]
By this time, the Government had resolved to adopt measures for
driving the Nkandhla district from various directions, hence Mackay,
on temporarily occupying Empandhleni, received instructions to
desist from doing any more than seize stock and burn kraals
belonging to rebels within the immediate vicinity of the magistracy; he
was warned not to attempt to draw the enemy prior to the general
converging movement shortly to take place. Attention was
accordingly confined by him to the district lying within a radius of six
or seven miles of the magistracy. This ground was completely cleared
of rebels, stock, etc.
Mansel, on being relieved by Mackay, was to have left with the Police
and Zululand Native Police for Fort Yolland on the 26th, but owing to
dense mists, was unable to do so until 10 a.m. on the 28th; he
reached his destination by a somewhat circuitous route at 11 a.m. on
the following morning. He had passed along the northern and north
eastern edges of the forest, where numbers of rebels were seen;
these, however, refrained from coming to close quarters.
Vanderplank, too, left for Ntingwe—an important strategical position,
six miles north of Macala—at 11 a.m. on the 28th, reaching camping
ground near there on the following day.
On the 28th, Mackay moved out in the direction of Nomangci, with a
couple of squadrons. He came in touch with about twenty-eight of the
enemy, when a few shots were exchanged.
On the morning of the 1st May, a small patrol, including Native
scouts, from Ntingwe, was fired on near Mfongozi. The fire was
returned, when the enemy decamped, leaving four horses and two
foals, which were captured. During the night, E. Titlestad's store at
Ntingwe was looted by the rebels.
Four squadrons of Mackay's force demonstrated again, on the 2nd
May, in the direction of Nomangci, when about a dozen kraals were
burnt, including one of Sigananda's, known as oPindweni. About 100
cattle, also goats, sheep and a few horses, were seized. The burning
of the kraals was necessary, as it was ascertained the rebels slept
and obtained food at them of a night. Shortly after noon the same
day, a squadron under Capt. Park Gray went to reconnoitre on

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Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 1

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 2

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 3

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 4

At the optimum we must have

In this problem we have

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 5

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 6

MPK MPL MPK MPL

7.8. Suppose the production of airframes is characterized by a CES production function: Q

The tangency condition implies

 L1/ 2 + K 1/ 2  K −1/ 2  L1/ 2 + K 1/ 2  L−1/ 2

Returning to the production function and assuming Q = 121, 000 yields

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 7

7.9. Suppose the production of airframes is characterized by a Cobb–Douglas production

The tangency condition implies

Substituting into the production function yields

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 8

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 9

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 10

c) Because the production function is Cobb-Douglas, we know that it has diminishing

From the tangency condition, we get

Substituting into the production function yields

This represents the input demand curve for L . Since

This represents the input demand curve for K .

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 11

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 12

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 13

a) The production function is Q = LS + ½ LU where LS denotes hours worked by skilled

b) The isoquant is a straight line.

Isoquant representing 100

Isoccost line representing

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 14

7.19. A manufacturing firm’s production function is Q = KL + K + L. For this production

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 15

7.21. A firm’s production function is Q = min(K , 2L), where Q is the number of

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 16

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 17

r Demand for Capital

7.26 A bicycle is assembled out of a bicycle frame and two wheels.

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 18

Initial Isocost Line:

A 100 bicycle isoquant

200 400 wheels 600

This gives us:

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 19

This is the cost-minimizing quantity of labor in the short run.

a) Since K = 9 , we get 18 L + 9 = 45 which implies that L = 36/18 = 2. Therefore the firm’s

Copyright © 2011 John Wiley & Sons, Inc. Chapter 7 - 20