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Fast-food restaurant chains like Whataburger are replacing cashiers with touch-screen ordering kiosks. Currently, the marginal product of another cashier is 48 customers served per hour;
Fast-food restaurant chains like Whataburger are replacing cashiers with touch-screen ordering kiosks. Currently, the marginal product of another cashier is 48 customers served per hour; the marginal product of another kiosk is 32 customers served per hour. A cashier can be hired fora wage of $15; a kiosk rents for $12.
- Is Whataburger using the optimal cost-minimizing mix of cashiers and kiosks? Explain.
(b) What can Whataburger do to improve its mix of inputs - hire more cashiers or fewer? Rent more kiosks or fewer?
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