Question
Recently Home Depot has been reconfiguringthe front-end of many of their stores in the U.S. to utilize almost allautomated self-checkout machines/kiosks as a way to
Recently Home Depot has been reconfiguringthe front-end of many of their stores in the U.S. to utilize almost allautomated "self-checkout" machines/kiosks as a way to cut costs (like the remodeledstore on 50th street here in Lubbock).However, suppose you recently visited a Home Depot location in Mexico, and you noticed that they have no self-checkout machines/kiosks. From an economic perspective, explain to me in detail why it is plausibly rational (i.e., it is a higher profit strategy) for Home Depot to continue to use conventional human cashiers in its Mexico locations. In doing so, think about production costs and the conditions and implications of long-run cost minimization, and the specific things that might be different between the US and Mexico to account for this difference; namely differences in both labor and technology that might justify the different production methods. Be as detailed as possible.
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