Does Bruno's decision to use more robots bring about a Pareto improvement? Discuss.

Automation, broadly referring to the adoption of machines and computers in the production process has become increasingly more popular across many sectors and countries. For example, the market for industrial robots has experienced a dramatic expansion in the last couple of decades, as shown in Figure 1. Figure 1 Annual shipments of industrial robots worldwide (thousand units) Source Modded from Exhibit 2, Mckinry & Compmix Dynamics, July 2019. Note: Forest 2018-2021 At the same time, the prices of labour and robots have been changing. The case of the US manufacturing sector in the last few decades is shown in Figure 2. Figure 2: Robot prices and labour compensation in manufacturing in the US (1990-100) 220 200 Source Tilley, Jonathan, "Automation, Robotics, and the Factory of the Future", 140 September 7, 20117, Mckinsey & Company. Plobet prices 3010 Now, consider Bruno, who owns a small manufacturing firm and produces windscreens for automobiles. Currently Bruno uses two robots and ten workers including Angela in his production. Answer the following questions based on the topics covered in the lectures from weeks 1-6