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I was wondering how to answer this question During the last 30 years computers have changed...

I was wondering how to answer this question
During the last 30 years computers have changed most production processes. Use isocost-isoquant diagram analysis to show the effect the spread of computers have had on labour use during the last 30 years. Make sure you list your assumptions clearly.

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Assumption

1. Computers have become cheaper

2. Computer made process more productive

3. Skilled labours are needed to use computer

As shown in diagram skilled workers needed for cheaper computers this leads to lead in wage and cost of capital. As relative cost of computer decreases i.e wage to capital ratio in 1970 is less than wage to capital ratio in 2012.it pivots the cost up for a given w of skilled worker increases. Isouqants didn't remain same. Productivity of workers increased due to use of computers hence isoquant become steeper.

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