Problem 2: Isoquanes E: Isocosts [15 Points] Suppose that there is a rm that produces tables and the firm receives an order for mu tables. The firm has two resources available to it. The rst is a [human] worker, who must be paid $15 for each hour they spend producing tables. The second is a robot, that costs $1!) of inputs [including electricity and maintenance} for each hour it works. Tables produced by either method are identical and of equivalent quality. Assume that the use of these two inputs is completely independent. This means that the number of hours of robot-work does not affect the productivity of the worker, and vice versa. The production of tables based upon the numbers of hours of each of the inputs used is given below. For example, 2 hours of robot time will produce 2!} tables. 'r' hours of worker time will produce 90 tables. 5. In the table above, ll in the MPH and MM columns. MFR is the Marginal Product of the Robot. MPW is the Marginal Product of the Worker. Show your work. [3 points] 6. Do any of the inputs in this example exhibit diminishing returns to scale? If so, which and how do you know? If not, how do you know? [2 points] Assu me that the sale price of tables is always sufciently high that it is protable to fulll this 1DDta ble order. The firm needs to make 1m) tables to fulll its order. Assume also that the rm is prot maximizing (8: therefore cost minimizing]. 1 what combinations of robot and worker hours must they use to minimize costs? Show your work. [Use the equation that must be true for oost minimization for full credit] [4 points] Now suppose that there is a major shortage of mechanics in the local economy. and the price of an hour of robot work increases {dramatically} from $10 to $50. 3. what does the principle of substitution say should happen to the firm's use of ti] worker hours and {iii robot hours? Explain your answer. [2 points] Continue to assume that it will be protable to produce the mo tables and that the firm is profit-maximizing. 9. With this new price for robot hours, what is the new combination of robot and worker hours that will minimize the cost of producing 1-30 tables? Show your work. [Use the equation that must be true for oost minimization for full credit] [4 points]