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ECOIOI _ ProblemSet_4.pdf Problem 2: Isoquants & Isocosts [15 Points] Suppose that there is a firm that produces tables and the firm receives an order for 100 tables. The firm has two resources available to it. The first is a (human) worker, who must be paid $15 for each hour they spend producing tables. The second is a robot, that costs $10 of inputs (including electricity and maintenance) for each hour it works. Tables produced by either method are identical and of equivalent quality. Assume that the use of these two inputs is completely independent. This means that the number of hours of robot-work does not affect the productivity of the worker, and vice versa. The production of tables based upon the numbers of hours of each of the inputs used is given below. For example, 2 hours of robot time will produce 20 tables. 7 hours of worker time will produce 90 tables. U Download @Info X Close 3 Hours 10 11 12 13 14 Robot 10 20 30 50 70 90 100 110 120 130 140 Worker 18 35 50 75 90 93 95 97 98 100 MPR MPW 5. 6. In the table above, fill in the MPR and MPW columns. MPR is the Marginal Product of the Robot. MPW is the Marginal Product of the Worker. Show your work. [3 points] Do any of the inputs in this example exhibit diminishing returns to scale? If so, which and how do you know? If not, how do you know? [2 points] Assume that the sale price of tables is always sufficiently high that it is profitable to fulfill this 100-table order. The firm needs to make 100 tables to fulfill its order. Assume also that the firm is profit maximizing (& therefore cost minimizing).