Answer to Question #223399 in Microeconomics for Dani

Question

Anne would produce 10 robots a week working for an employer that recently offered her a position. Each robot requires $50 in material inputs and sells for $100. For Anne, this would mean no longer day trading, from which she makes $450 per week. Which of the following wage rates might Anne and the robot factory agree to?

Thank you so much¡

Answer 1

The material inputs cost for the 10 robots a week

10* $50 = $500

The total sales per week

10* $100 = $1000

profit per week

$1000- ($500+$450) = $50

The best wage rate for Anne to agree with her employer who is the owner of the robot factory should be one which ensures maximum returns to the factory as well as ensuring that there is optimum utilization of labor.