Rio Tinto's Incentive to Adopt New Robotic Technology Was Increased

question 43

Multiple Choice

Rio Tinto's incentive to adopt new robotic technology was increased by the high wages it was having to pay to attract miners and truck drivers.In this instance, Rio Tinto began using new robotic technology to

• A)add capital as a complementary resource for its labor.
• B)substitute labor for capital in production.
• C)substitute capital for labor in production.
• D)add labor as a complementary resource for its capital.

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Definitions:

Budget Line

A budget line represents all combinations of goods and services that a consumer may purchase given current prices and income levels.

Marginal Rate of Substitution

How quickly a person agrees to trade one product for a different one to preserve their overall happiness.

Satisfaction Maximized

The point at which an individual achieves the highest level of satisfaction or utility from the consumption of goods or services.

Consumption Change

A variation in the total amount of goods and services that households and individuals are willing and able to consume over a certain period.