Tesla, the electric car maker, has expressed an intention to carry out productio
Tesla, the electric car maker, has expressed an intention to carry out production in Fremont in a way that makes intensive use of industrial robots. ; It must balance this intention with the judgement and adaptability offered by human workers and the additional productivity made possible by installing conventional equipment for the production of automobiles.
; Currently, 50 robots are being leased from a Japanese provider at a cost of $100,000 per robot per year. ; The marginal product of a robot corresponds to 500 additional cars per year. ; Each piece of conventional equipment is being leased from a German provider at a cost of $20,000 per year. ; Its marginal product is 125 additional cars per year. The going rate of pay for the human workers is $80,000 per year. ; One hundred workers are employed. ; The marginal product of a worker amounts to 450 additional cars per year.
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
; Other things equal, the marginal product of an input falls as more of it is employed.
; It is expected that 10 workers will quit or retire by the end of the year. ; Tesla plans NOT to replace them. ; Instead, Tesla has in mind the use of 10 additional robots next year.
; Comment on the efficiency of Tesla’s use of robots. ; Comment also on Tesla’s use of humans vs. its use of conventional equipment. ; Should Tesla become more labor-intensive? ; More equipment-intensive? ; Fully explain your answers.