Read the Chicago Tribune article titled “At Amazon’s Monee Warehouse, Robot Co-Workers are the New Normal”. Over the long run, it appears that Amazon is working towards min- imizing its operating costs by reallocating its factors of production away from labor and towards robots (i.e., capital). Using the cost minimization model discussed in class, explain how rising relative wages likely incentive Amazon to invest in robots.
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3) Read the Chicago Tribune article titled “At Amazon’s Monee Warehouse, Robot Co-Workers are the New Normal”. Over the long run, it appears that Amazon is working towards min- imizing its operating costs by reallocating its factors of production away from labor and towards robots (i.e., capital). Using the cost minimization model discussed in class, explain how rising relative wages likely incentive Amazon to invest in robots.
4) All else equal, which is steeper, the
5) Assume that the
(a) How would this firm’s revenues change if it increased its quantity produced by a little bit? Explain.
(b) Instead of increasing its quantity produced, how would this firm’s revenues change if it increased its price a bit? Explain.
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