Suppose a cafe owner wants to switch to automatic espresso machines instead of paying baristas to pack

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Suppose a cafe owner wants to switch to automatic espresso machines instead of paying baristas to pack the coffee grounds by hand. The machines are twice as effective as a human; the fixed cost per machine equals the yearly wage of one employee. Explain how the equilibrium price and quantity of labor will change.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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