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Suppose a car manufacturing plant uses a combination of workers and robots in its assembly line. Assume that workers and robots can perform the same
Suppose a car manufacturing plant uses a combination of workers and robots in its assembly line. Assume that workers and robots can perform the same tasks as each other. Currently the plant employs 100 workers and uses 20 robots. The marginal product of another worker is 1 car per day and the marginal product of another robot is 5 cars per day. If the daily wage for a worker is $160 and the daily rent for a robot is $1000, is the plant currently minimizing costs? Select ] If not, how should the plant alter it's mix of inputs to reduce costs while maintaining its current level of output? Select]
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