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Assume that fruit picking can be done by children or adults, but that adults are twice as efficient as children (they pick twice as fast).

  1. Assume that fruit picking can be done by children or adults, but that adults are twice as efficient as children (they pick twice as fast). The production function for fruit-picking is thus

When output is measured in bushels of apples, labor is measured in days, so labor is days of adult/children labor input.

  1. Depict the isoquants for a typical orchard in terms of fruit-picking.
  2. Assume the wage rate of adults is $100 per day, and the wage for children is $60 per day. Show the isocost lines.
  3. Show the profit-maximizing input choice where the profit-maximizing output is 1000 bushels of apples. Depict the scale and substitution effects if the wage of child labour falls to $25 per day. What does the demand curve for child labor look like?
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5. Assume that fruit picking can be done by children or adults, but that adults are twice as efcient as children (they pick twice as fast). The production inction for fruit-picking is thus Q = 10 x (ZLA + LC) When output is measured in bushels of apples, labor is measured in days, so labor is days of adult/ children labor input. a. Depict the isoquants for a typical orchard in terms of fruit-picking. b. Assume the wage rate of adults is $100 per day, and the wage for children is $60 per day. Show the isocost lines. c. Show the prot-maximizing input choice where the prot-maximizing output is 1000 bushels of apples. Depict the scale and substitution effects if the wage of child labour falls to $25 per day. What does the demand curve for child labor look like

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