Question

In Vietnam, a paddy of rice is transplanted using 20 workers with wicker baskets; in South Korea a paddy of rice is transplanted using 1 worker and a mechanical rice transplanter, a machine that puts rice seedlings into the earth as if they were taken by human hands. Using an isoquant‐isocost line graph, illustrate why these two different methods are used for the same purpose in the two countries."

Answer 1

1. Isoquant is a curve containing different combination of labor and capital such that the quantity produced is constant across the curve. Isocost is a curve containing different combination of labor and capital such that the cost incurred in these different combinations is same. Two different methods mentioned in the question are used for the same purpose in the two countries as the two combination of labor and capital used in these countries lie on the same isoquant isocost line.