Grapes must be harvested by hand. This production function is characterized by fixedproportions each worker must have one pair of stem clippers to produce any output. A skilledworker with clippers can harvest 50 pounds of grapes per hour.

a) Sketch the grape production isoquants for q = 500, q = 1,000 and q = 1,500 and indicatewhere on these isoquants firms are likely to operate.

b) Suppose a vineyard owner currently has 20 clippers. If the owner wishes to utilize fully theseclippers, 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 mightthe owner hire fewer workers than indicated in this part?

d) Ambidextrous harvesters can use two clippers – one in each hand – to produce 75 pounds ofgrapes per hour. Draw an isoquant map (for q = 500, 1,000 and 1,500) for ambidextrousharvesters. Describe in general terms the considerations that would enter into an owner’sdecision to hire such harvesters.

Answer rating: 100% (QA)

Question A Inputs Labor L Worker and Clippers C These inputs are used in fixed proportion 11 Q 50 ca... View the full answer