Before ATMs, the Average Bank Branch Employed 20 Employees; After

question 206

Multiple Choice

Before ATMs, the average bank branch employed 20 employees; after ATMs, the average branch employed 13 employees, but banks have opened more branches. These developments suggest that

• A) ATMs are purely substitutes for labor in banking.
• B) labor and ATMs are substitutes in some bank functions, complements in others.
• C) ATMs are purely complements for labor in banking.
• D) labor and ATMs are neither substitutes nor complements in banks’ various functions.

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Definitions:

Output

The total amount of goods or services produced by a company, system, or economic process.

Marginal Product

The additional output that is produced by using one more unit of a particular input, ceteris paribus.

Fertilizer

A substance used to enhance the growth of plants and increase yield by supplying essential nutrients.

Bushels

A unit of volume that is used for quantities of dry commodities (such as grains or produce), where the capacity varies according to the commodity.