Narasimhan is accelerating the rollout of new equipment that will make it easier for baristas to prepare complicated drinks.

Question 1:

Draw a graph with MC, ATC, and downward sloping demand curve. Be sure to identify all intersections, equilibrium points, and labels. Show on this graph what Narasimham expects to happen as a result of introducing new equipment for drink preparation. Be sure to include a one paragraph explanation of how the graph will be affected and the expected result of this change.