
(a)
To determine:
The higher profit among the two firms in which one is using robotics and other is using human workers in a recession scenario.
Introduction:
As there are two firms which are producing smart phones. Among these two firms, one is using robotics technology which is very costly although containing less variable cost and the other firm is using human workers which are not so costly but constitute a higher variable cost.
(b)
To determine:
The higher profit among the two firms in which one is using robotics and other is using human workers in a boom scenario.
Introduction:
As there are two firms which are producing smart phones. Among these two firms, one is using robotics technology which is very costly although containing less variable cost and the other firm is using human workers which are not so costly but constitute a higher variable cost.
(c)
To determine:
The higher beta among the two firms in which one is using robotics and other is using human workers.
Introduction:
As there are two firms which are producing smart phones. Among these two firms, one is using robotics technology which is very costly although containing less variable cost and the other firm is using human workers which constitute a higher variable cost.

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