The advantages and disadvantages of hiring a robot-based workforce. Introduction: Fixed costs are those expenses that do not change when the output increases or decreases. These costs are recurring and are supposed to be paid whether the business is active or not. Variable costs are those expenses that are recurring but are not fixed in amount. These costs are applicable to the level of output. If there is a change in the level of production, the variable cost is also bound to change. The substitution effect is said to take place during a price or fall in income when buyers replace or substitute utility of expensive commodities with comparatively cheaper alternatives. Subsequently, with a fall in income substitution income will tend to take place more often. The income effect is the change in demand , supply and demand and supply curves that take place when the incomes of an individual or an entire economy change.

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Chapter 11, Problem 2BCQ

To determine

The advantages and disadvantages of hiring a robot-based workforce.

Introduction:

Fixed costs are those expenses that do not change when the output increases or decreases. These costs are recurring and are supposed to be paid whether the business is active or not.

Variable costs are those expenses that are recurring but are not fixed in amount. These costs are applicable to the level of output. If there is a change in the level of production, the variable cost is also bound to change.

The substitution effect is said to take place during a price or fall in income when buyers replace or substitute utility of expensive commodities with comparatively cheaper alternatives. Subsequently, with a fall in income substitution income will tend to take place more often. The income effect is the change in demand, supply and demand and supply curves that take place when the incomes of an individual or an entire economy change.

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