When Robots Are Used to Replace Workers on a Factory

question 392

Multiple Choice

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

• A)will increase only if the company can increase the price of its product.
• B)is likely to increase.
• C)is likely to decrease.
• D)will not change.

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to the price.

Internet Auction

An online platform where goods and services are sold to the highest bidder through competitive bidding processes.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price.

Marginal Cost

The increase in cost that arises from the production of one additional unit of a good or service.