Question: Suppose Apple is considering implementing more robots during the manufacturing process. Here are different possibilities: Technology # Workers # Robots A 5 18 B 7

  1. Suppose Apple is considering implementing more robots during the manufacturing process. Here are different possibilities:

Technology

# Workers

# Robots

A

5

18

B

7

23

C

10

14

D

12

18

E

19

8

a. (7 pts) Graph the table above with # Robots on the vertical (Y) axis and # Workers on the horizontal (x) axis

  1. Make sure to label the axis's, and label each point
  2. Which technologies can be eliminated right away?
  3. Write the formula for the total cost using this notation:
    1. w = hourly wages
    2. L = # of workers
    3. p = hourly cost of Robots
    4. R = # of Robots
    5. C = total cost
    6. Let's graph the remaining isocost lines
      1. Suppose the wages of workers is $15/hour and the cost to operate a Robot is $12/hour
        1. (5 pts) Calculate the total cost for each remaining technology
        2. (3 pts) Convert the total cost equation into the form y=mx + b for each technology

a. Remember which axis is what - reference 1a

  1. Graph the remaining isocost lines
  2. What does the slope (in general) represent?
  3. What do you notice about the slopes for the remaining technologies?
  4. (3 pts) For each technology, if they gave up one worker, how many more robots could they gain/lose? (fractions are ok)
  5. Which technology will be chosen?
  6. Say a shortage in electronic parts makes the robots more expensive to operate and the hourly cost jumps up to $25/hour.
  7. Graph the original isocost line select technology and then graph the new isocost line
  8. Is this still the lowest cost technology?
  9. Graph the isocost line for the lowest cost technology on the same graph

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!