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The invention of a new machine serves as a mobile station for receiving and accumulating packed flats of strawberries close to where they are picked,
The invention of a new machine serves as a mobile station for receiving and accumulating packed flats of strawberries close to where they are picked, reducing workers' time and burden of carrying full flats of strawberries.
According to Rosenberg ch a machineassisted crew of pickers produces as much output, as that of an unaided crew of workers. In a day, hour workweek, the machine replaces workerhours. At an hourly wage cost of $ a machine saves $ per week in labor costs, or $ over a week harvesting season. The cost of machine operation and maintenance expressed as a daily rental is $ or $ for a sixday week. Thus, the net savings equal $ per week, or $ for weeks.
Draw the isoquant assuming that only two production methods are available pure labor and labormachine Label the isoquant and axes as thoroughly as possible.
Add an isocost line to show which technology the firm chooses be sure to measure wage and rental costs on a comparable time basis
The machine can be rented for $ per hour from $ divided by hours
Using the line drawing tool, graph the firm's isoquant for producing units of output. Label this line 'I.
Using the line drawing tool, graph the firm's isocost line for producing units of output at lowest cost. Label this line L
Carefuly follow the instructions above, and only draw the required objects.
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