Friday, June 5, 2009

This Is So Cool....

HT to Mark Perry



Show this to your students and ask what some of the implications are for workers? for job skills? for infrastructure? for product quality? for competition?

This post references the following Keystone Economic Principles:
2. There Ain't No Such Thing as a Free Lunch.
3. All choices have Consequences
.
4. Economic Systems Influence Choices.
7. Economic thinking is Marginal Thinking.
and
8. Quantity and Quality of available resources impact living standards

2 comments:

Mike Fladlien said...

i'm shocked at how much of the productive process was completed by robots...my point is, if robots are building the cars, then the industry is approaching constant cost "driving" competitors out of the industry...germany engineering is fantastic but the ideas were probably hatched in the united states...

Mike Fladlien said...

i love this blog so pardon me as i comment more...suppose that the industry approaches a constant cost...that means that the only ways businesses can compete is by cutting the price...as the price decreases, profits naturally erode...in the case of the auto industry this is a classic case of Bertrand equilibrium....