Grapes must be harvested by hand. Fixed proportions characterize this production functioneach worker must have one pair
Question:
Grapes must be harvested by hand. Fixed proportions characterize this production function—each worker must have one pair of stem clippers to produce any output. A skilled worker with clippers can harvest 50 pounds of grapes per hour.
a. Sketch the grape production is oquants for q = 500, q = 1,000, and q = 1,500 and indicate where on these is oquants firms are likely to operate.
b. Suppose a vineyard owner currently has 20 clippers. If the owner wishes to utilize fully these clippers, how many workers should be hired? What should grape output be?
c. Do you think the choices described in part b are necessarily profit maximizing? Why might the owner hire fewer workers than indicated in this part?
d. Ambidextrous harvesters can use two clippers—one in each hand—to produce 75 pounds of grapes per hour. Draw an is oquant map (for q = 500, 1,000, and 1,500) for ambidextrous harvesters. Describe in general terms the considerations that would enter into an owner’s decision to hire such harvesters.
Step by Step Answer:
Intermediate Microeconomics and Its Application
ISBN: 978-0324599107
11th edition
Authors: walter nicholson, christopher snyder