in vietnam, a paddy of rice is transplanted using 20 workers with wicker backets, in south korea a paddy of rice is transplanted using one worker and a mechanical rice transplanter. using a isoquant-isocost line graph, illustrate why these two different methods are used for the same purpose in the two countries?
To illustrate why different methods are used for rice transplantation in Vietnam and South Korea, we can use an isoquant-isocost line graph.
An isoquant-isocost line graph is a graphical representation that shows different combinations of inputs (such as labor and machinery) that can produce the same level of output (in this case, the transplantation of rice).
In the case of Vietnam, where 20 workers with wicker baskets are used for rice transplantation, the labor-intensive method can be represented on the graph with point A. Assuming that the cost of labor is relatively low in Vietnam, the isocost line representing the budget constraint would have a flatter slope. This implies that Vietnam can afford to use more labor while keeping the cost relatively low.
On the other hand, in South Korea, where a mechanical rice transplanter and one worker are used, the capital-intensive method can be represented as point B. It is likely that the cost of machinery, including the cost of purchasing and maintaining the transplanter, is relatively low in South Korea. Therefore, the isocost line representing the budget constraint would have a steeper slope.
The difference in cost between labor and capital in each country leads to the choice of the different methods. In Vietnam, where labor is relatively cheap, it is more cost-effective to use a labor-intensive method. Meanwhile, in South Korea, where machinery is more affordable, a capital-intensive method is more economically viable.
Therefore, by comparing the slope of the isocost lines, we can see why Vietnam and South Korea employ different methods for the same purpose of rice transplantation, based on the relative cost of inputs in each country.