Here is a "dynamic technology" problem - When it comes to automobile production it is an accepted fact that American automakers did not readily adopt and use Asian and European technologies in the production of cars. The result was a loss of global markets for the American producers. So the USA government imposed tariffs and other restrictions on the import of foreign cars. In response the European and Asians constructed production plants in the USA in low-cost, non-union states like Tennessee and Kentucky. As a result the Americans (especially in the Detroit factories) then begin to integrate the Asian and European technologies into the production to compete with the new arrivals. Part of the new technology was to substitute capital (adding robots) for labor in the production of cars.

Using isoquant maps, show the typical American car maker production function prior to the new arrivals. How might the maps change after the new arrivals arrived? What might be different between the two isoquant maps with respect to the height of the maps and the expected RTSs on the maps?