The owner of Barb’s Burgers has suggested the firm should invest in more modern technology and created a list of potential changes she thinks may be helpful as an investment. She has asked you to analyze the four potential choices and comment on what this would change in terms of cost: Allow Barb’s Burgers to be delivered via the pre-existing food delivery systems. For example, allow people from Doordash/Uber Eats to pick-up orders and deliver them. This would require the firm to make some minor changes and result in fewer parking spaces for customers dining at the restaurant. Question: Argue how each of these is likely to change the cost of the firm once implemented (i.e. are any of these a fixed cost or a variable cost). How this adjust the amount of labour and/or capital currently necessary for the firm? Would the technology be a general technology, labour-saving, or capital-saving?
The owner of Barb’s Burgers has suggested the firm should invest in more modern
technology and created a list of potential changes she thinks may be helpful as an
investment. She has asked you to analyze the four potential choices and comment on
what this would change in terms of cost:
Allow Barb’s Burgers to be delivered via the pre-existing food delivery systems.
For example, allow people from Doordash/Uber Eats to pick-up orders and deliver
them. This would require the firm to make some minor changes and result in fewer
parking spaces for customers dining at the restaurant.
Question: Argue how each of these is likely to change the cost of the firm once implemented (i.e. are any of these a fixed cost or a variable cost). How this adjust the
amount of labour and/or capital currently necessary for the firm? Would the technology be a general technology, labour-saving, or capital-saving?
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