Question
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
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
Q = 10 (2LA + LC)
where output is measured in bushels of apples, labour is measures in days, LA is the number of days of adult labour, and LC is the number of days of child labour. (Hint: Treat adult labor and children labor as two factors. Put adult labor on vertical axis and children labor on horizontal axis.)
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.
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