Grapes must be harvested by hand. This production function is characterized by fixed proportions - 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 isoquants for q=500, q=1,000, and q=1,500 and indicate where on these isoquants firms are likely to operate.
B) Suppose a vinyard 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 harvestors can use two clippers - one in each hand - to produce 75 pounds of grapes per hour. Draw an isoquant map (for q = 500, 1,000, 1,500) for ambidextrous harvestors. Describe in general terms the considerations that would enter into an owner's decision to hire such harvestors.