9.1 Power Goat Lawn Company uses two sizes of mowers to cut lawns. The smaller mowers have...
Question:
9.1 Power Goat Lawn Company uses two sizes of mowers to cut lawns. The smaller mowers have a 24-inch blade and are used on lawns with many trees and obstacles. The larger mowers are exactly twice as big as the smaller mowers and are used on open lawns where maneuverability is not so difficult. The two production functions available to Power Goat are: Large mowers Small mowers
a. Graph the g Output per Hour (square feet) 8000 5000 Capital Input (# of 24" mowers) Labor Input 2 I 1 I 40,000 square feet isoquant for the first production function. How much k and/ would be used if these factors were combined without waste?
b. Answer part
(a) for the second function.
c. How much k and I would be used without waste if half of the 40,000-square-foot lawn were cut by the method of the first production function and half by the method of the second? How much k and I would be used if three fourths of the lawn were cut by the 'first method and one fourth by the second? What does it mean to speak of fractions of k and I?
d. On the basis of your observations in part (c), draw a q-40,000 isoquant for the combined production functions.
Step by Step Answer:
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324585377
10th Edition
Authors: Walter Nicholson, Christopher M. Snyder