ECON 3341 Saint Marys University Productivity Functions Questions Assume that fruit picking can be done by children or adults, but that adults are twice as

ECON 3341 Saint Marys University Productivity Functions Questions Assume that fruit picking can be done by children or adults, but that adults are twice as efficient as children (they pick twice as fast). The production function for fruit picking is thus Q= 10 X (2LA + LC ) where output is measured in bushels of apples, labour is measured in days and LA is the number of days of adult labour, and LC is the number of days of child labour. Depict the isoquants for a typical orchard (in terms of fruit-picking)Assume the wage rate of adults is $100 per day, and the wage for children is $60 per day. Show the isocost lines.Show the profit-maximizing input choice where the profit-maximizing output is 1000 bushels of apples. Depict the scale and substitution effects if the wage of child labour falls to $25 per day. Show the demand curve for child labour and get 3 bonus marks!!

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