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4. Grumpy Mule produces cups of coffee. In order to produce that output, they hire labor in the form of student workers and capital in
4. Grumpy Mule produces cups of coffee. In order to produce that output, they hire labor in the form of student workers and capital in the form of coffee machines. They can make coffee using $10 drip coffee technology, $100 regular coffee maker or $500 super refined espresso machines. While each machine can produce the same amount of coffee, 25 cups an hour, the drip technology requires six workers, the coffee maker requires 3 workers, and the super refined espresso machines only require 1 worker a. Graph the isoquant described above. b. Which of the three methods of producing coffee is the most labor intensive? Which is the most capital intensive? Coffee demand is on the rise as midterms force students to study more. If Grumpy Mule can double the workers and the capital to produce 65 total cups of coffee an hour, are they exhibiting constant, increasing, or decreasing returns to scale? Graph the second, higher isoquant described below, indicating the level of outuut
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