The owner of Barb’s Burgers has suggested the firm should invest in more modern technology and created a list of potential changes she thinks may be helpful as an investment. She has asked you to analyze the four potential choices and comment on what this would change in terms of cost: Purchase the Burgertron 4000, a machine that promises to correctly and perfectly cook up to 20 hamburger patties at a time in under 4 minutes. The machine can be integrated into the ordering system and will correctly put condiments on the burgers. You can assume that during the busiest parts of the day, the firms is selling between 80 and 120 burgers an hour, while in slow periods it is selling between 10 and 30 burgers in an hour • Question: Argue how each of these is likely to change the cost of the firm once implemented (i.e. are any of these a fixed cost or a variable cost). How this adjust the amount of labour and/or capital currently necessary for the firm? Would the technology be a general technology, labour-saving, or capital-saving?
The owner of Barb’s Burgers has suggested the firm should invest in more modern
technology and created a list of potential changes she thinks may be helpful as an
investment. She has asked you to analyze the four potential choices and comment on
what this would change in terms of cost:
Purchase the Burgertron 4000, a machine that promises to correctly and perfectly
cook up to 20 hamburger patties at a time in under 4 minutes. The machine can
be integrated into the ordering system and will correctly put condiments on the
burgers. You can assume that during the busiest parts of the day, the firms is
selling between 80 and 120 burgers an hour, while in slow periods it is selling
between 10 and 30 burgers in an hour
• Question: Argue how each of these is likely to change the cost of the firm once implemented (i.e. are any of these a fixed cost or a variable cost). How this adjust the
amount of labour and/or capital currently necessary for the firm? Would the technology be a general technology, labour-saving, or capital-saving?
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