Answered: The owner of Barb’s Burgers has…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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Question

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:

Hire a firm to create an online system to allow customers to order even when they
are not physically at Barb’s Burgers. This would allow for people to ensure their
orders were input correctly for those who are pickier eaters. The online system
would need to be integrated into the point of sales system to track orders for the
kitchen

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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