# Question: The invention of a new machine serves as a mobile

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 workersâ€™ time and burden of carrying full flats of strawberries. According to Rosenberg (2004), a machine- assisted crew of 15 pickers produces as much output, q*, as that of an unaided crew of 25 workers. In a 6-day, 50- hour workweek, the machine replaces 500 worker-hours. At an hourly wage cost of \$ 10, a machine saves \$ 5,000 per week in labor costs, or \$ 130,000 over a 26-week harvesting season. The cost of machine operation and maintenance expressed as a daily rental is \$ 200 or \$ 1,200 for a six-day week. Thus, the net savings equal \$ 3,800 per week, or \$ 98,800 for 26 weeks.
a. Draw the q* isoquant assuming that only two production methods are available (pure labor and labor- machine). Label the isoquant and axes as thoroughly as possible.
b. Add an isocost line to show which technology the firm chooses (be sure to measure wage and rental costs on a comparable time basis).
c. Draw the corresponding cost curves (with and without the machine), assuming constant returns to scale, and label the curves and the axes as thoroughly as possible.

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