Rosenberg (2004) reported the invention of the new machine that serves as a mobile station for receiving and accumulating packed flats of strawberries close to where they are picked, reducing workers' time and the burden of carrying full flats of strawberries. A machine-assisted crew of 15 pickers produces as much output, q*, as that of an unaided crew of 25 workers. In a 6-day, 50-hour workweek, the machine replaces 500 worker hours. At an hourly wage cost of $10, a machine saves $5,000 per week in labor costs or $130,000 over a 26-week harvesting season. The cost of machine operation and maintenance expressed as a daily rental is $200, or $1,200 for a 6-day week. Thus, the net savings equal $3,800 per week or $98,800 for 26 weeks.

1. Introducing machine assisted production is an example of technological innovation. Evidently, the example above helps to improve productivity. How does such an improvement affect the supply curve?
2. Such technological innovations were opposed in the past by Luddites that marched around destroying machines because they increased unemployment. Do you agree with such behaviors and how could they be justified? What are other possible social benefits of introducing labor saving technology?
3. From your earlier study of basic economics, what type of unemployment is created by such technological innovations? How can this type of unemployment, if at all it occurs, be mitigated or solved?