2.06 LecNotes

2.06 LecNotes - SupplementstoDiscussion...

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If they have to put cars together with wrenches only, maybe they can assemble 1 car a day. ± e.g. given 10 laborers the most amount of cars they can assemble in a factory is 30 a day given they are robotic arms, assembly lines, and other machines to help them. • Technical given input, the largest amount of goods you can produce. ± Ford can pay 10 experienced laborers to assemble cars for $500 per person a day, to assemble 30 cars. However, 10 UCSD college students can also assemble 30 cars a day, but is willing to take $350 per person a day. (Because it really isn't that car to put cars together) By keeping the experienced laborers instead of hiring the college students, ford is being economic *INEFFICIENT*. •E c o n om i c
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2.06 LecNotes - SupplementstoDiscussion...

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