Now, consider our cost minimization model of Ch 9. In this case, assume that the two inputs are labor (X axis) and robots (Y axis). Draw a graph of an initial cost minimizing position which depicts the cost minimizing amounts of labor and robots capable of producing the desired output, Q. Label your axes, and intercepts clearly (assume that r =Price of a robot, w = price of Labor, and C is total cost, R=quantity of Robots, and L =quantity of Labor). Draw on the same graph what would happen if the wage rose (say, due to the increase in the minimum wage). Describes what happens in the graph. Is the firm still able to produce the same desired output? Explain.

R = $22K

W0 = $7.25, W1 = $9

C = $32K

R = 2

L = 50