Question
Suppose that engineers develop new kinds of robots which are better able to substitute for humans in some of the jobs that we currently perform
Suppose that engineers develop new kinds of robots which are better able to substitute for humans in some of the jobs that we currently perform (e.g. cooking), as well as to perform new jobs (e.g. assembling oil rigs underwater). The robots would thus free up people's time for jobs in which humans still hold a comparative advantage, such as acting, waiting tables, or tutoring economics classes.
These robots would make humans more productive on average, but what effect would they have on wages? If the answer is "it depends" then what does it depend on?
Analyse this issue by using graphs of production functions before and after the change.
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