Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Angela has been working at a real wage rate of $25 per hour. Illustrate in a diagram how if Bruno decides to use more robots

Angela has been working at a real wage rate of $25 per hour. Illustrate in a diagram how if Bruno decides to use more robots it could affect Angela's future levels of

real wage,

utility,

free time, and

consumption.

Your diagram should have Angela's daily free time on the horizontal axis and her daily consumption on the vertical axis. Briefly explain your diagram.

image text in transcribed
Automation, broadly referring to the adoption of machines and computers in the production process has become increasingly more popular across many sectors and countries. For example, the market for industrial robots has experienced a dramatic expansion in the last couple of decades, as shown in Figure 1. Figure 1 Annual shipments of industrial robots worldwide (thousand units) Source Modded from Exhibit 2, Mckinry & Compmix Dynamics, July 2019. Note: Forest 2018-2021 At the same time, the prices of labour and robots have been changing. The case of the US manufacturing sector in the last few decades is shown in Figure 2. Figure 2: Robot prices and labour compensation in manufacturing in the US (1990-100) 220 200 Source Tilley, Jonathan, "Automation, Robotics, and the Factory of the Future", 140 September 7, 20117, Mckinsey & Company. Plobet prices 3010 Now, consider Bruno, who owns a small manufacturing firm and produces windscreens for automobiles. Currently Bruno uses two robots and ten workers including Angela in his production. Answer the following questions based on the topics covered in the lectures from weeks 1-6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting And Analysis

Authors: Lawrence Revsine, Daniel Collins

5th Edition

0078110866, 978-0078110863

More Books

Students also viewed these Economics questions

Question

Produce a nine-step process for conducting a literature review.

Answered: 1 week ago

Question

1. What does this mean for me?

Answered: 1 week ago