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Chapter 28: Q. 1- Critical Thinking Questions (page 642)

Why would increased use of robotic sewing machines on the part of a clothing manufacturer cause the marginal product derived from utilization of these machines to decline?

Short Answer

Expert verified

Sewing machines are still useful for joining and cutting woven fabric. When robots are used for tasks that they can perform more efficiently and consistently than humans, they increase productivity.

Step by step solution

01

Introduction.

The marginal product of labour is computed by dividing the total product value by the labour difference. The marginal product of an input is the total output gained by adding one more unit of that input. Take the derivative of the production process in terms of the relevant input to find it.

02

The significance of sewing machines in the clothing industry.

Sewing machines are still effective for connecting and cutting knit fabrics.

Garments are still primarily made by cutting two-dimensional woven, sometimes knitted, fabric pieces and sewing them together with a sewing machine.

03

Explanation.

When robots are used for tasks that they can perform more efficiently and consistently than humans, they increase productivity.

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Most popular questions from this chapter

If more firms were to find ways to induce larger numbers of workers to hold true to labor supply commitments, would the market labor supply curve tend to shift to the left or to the right? Explain your reasoning.

Suppose that the MRP0 curve in Figure 28-2 is drawn under the assumption the product price is \(5 per unit. Which alternative MRP curve MRP1 or MRP2 -applies if the market clearing product price drops to \)3 per unit? Why?

Explain how the following events would affect the demand for labor.

a. A new education program administered by the company increases labor's marginal product.

b. The firm completes a new plant with a larger workspace and new machinery that workers can utilize and that does not substitute for the functions provided by workers' labor.

Recently, there has been an increase in the market demand for products of firms in manufacturing industries. The production of many of these products requires the skills of welders. Because welding is a dirty and dangerous job compared with other occupations, in recent years fewer people have sought employment as welders. Draw a diagram of the market for the labor of welders. Use this diagram to explain the likely implications of these recent trends for the market clearing wage earned by welders and the equilibrium quantity of welding services hired.

Take a look at the two panels of Figure 28-5. Explain why at the points labeled E1, U.S. firms might have an incentive to outsource labor services abroad. In addition, explain why the shifts in the demand curves to the positions denoted D2 occur in each panel.

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