25 Jan Consider a company that assembles
Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Draw an isoquant map illustrating this situation. Now suppose that as a result of progress in robot design and manufacture, robots can be used as a substitute for labor. Draw an illustrative isoquant map. How would the isoquant map you have drawn change if further improvements were made in robots so that one new robot could do the work of two old robots?
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