Question: Continuing the prior question, suppose that Universal Gizmo devises a new plant design that uses 15 gizmo presses and 5 workers also to produce 100

Continuing the prior question, suppose that Universal

Gizmo devises a new plant design that uses

15 gizmo presses and 5 workers also to produce

100 gizmos per day. How would you construct an

isoquant for the firm for 100,000 gizmos per day

based on the following assumptions:

a. The firm uses plants only of the type specified

in question 7.

b. The firm uses plants only of its new type.

c. The firm uses 500 plants of the type in question

7 and 500 plants of the new type.

What do you conclude about the ability of UG

to substitute workers for gizmo presses in its

production?

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