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a. Given the much higher productivity of robots, why would the company consider using employees in its production? a. b. They can only do what

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a. Given the much higher productivity of robots, why would the company consider using employees in its production? a. b. They can only do what they are programmed to do. Though employees do not produce as much they do not cost as much hourly to operate. Robots cannot not fix themselves and cannot reason is something going wrong. Company will consider using employees, because it is the marginal product per unit of dollar that is used to identify the usefulness of the resource that can be either capital or labor, For example: MPL per unit of dollar for first unit of labor = 35/25 = 1.4 d. MPR per unit of dollar for fourth units of robot = 300/250 = 1.2 Above calculation shows that first labor is more useful than the fourth unit of robot, making company to deploy employees in the organization. So, it is not marginal product, rather marginal product per dollar spent that is more important. Organization first calculates marginal product per dollar spent and on the basis of it, organization deploys those resources that give higher productivity per dollar

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