Terry's Typing Service produces manuscripts. The only way to produce a manuscript is for 1 secretary to use 1 typewriter for 1 day. Two secretaries with 1 typewriter or 1 secretary with 2 typewriters can still produce only 1 manuscript per day.
a. Draw Terry's 1-unit isoquant.
b. Assuming that Terry's technology exhibits constant returns to scale, draw several more isoquants.
c. Assuming that Terry rents typewriters for $4 apiece per day and pays secretaries $6 apiece per day, draw some of Terry's isocosts. Draw the expansion path.
d. Terry has signed a contract to rent exactly 5 typewriters. Illustrate the following, using tables, graphs, or both: the total product and marginal product of labor; the short-run total cost, variable cost, average cost, average variable cost, and marginal cost; the long-run total cost, long-run average cost, and long-run marginal cost.