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Principles of Economics

Assuming the present price of the robots is 30 $ and that wages of labor are 120. Bruno presently employs 2 robots and 10 workers. The total cost of labor equals 1260 $. Two humans are important as manual labor is important and the company cannot rely on artificial intelligence. Thus the new combination is of two workers and 10 robots. The cost now comes to $ 540.

There are numbers of causes for the increased use of robots and decrease of wage labor:

• The onetime cost and maintenance of robots are way lesser than wage labor and their emoluments.
• Robots are increasing in the science and tech and precision industry like medicine.
• Industrial grade robots are manufactured on a large scale.
• Robots have flexibility, they can work for longer hours, have low overhead costs and they are more productive per day and per year as long working hours and lesser days off (maintenance, etc.)