A small, independent fast-food shop is considering whether or not to introduce a new machine to speed up production. The machine would be able to produce burgers to order and enable the production of burgers to be split into different stages so that each

The primary issue facing the business right now is the customer complaints about service time, which is likely contributing to the decline of sales revenue. By installing the new machine, the business hopes to speed up production of burgers, reducing wait time through increased efficiency. It is hoped that this can increase customer satisfaction, to lead to higher sales numbers and therefore greater profits, benefitting both the business and the workers. Additionally the technological economies of scale allowed by the efficiency of the machine would permit a lower unit cost for burgers, allowing the business to compete with its low-cost rival. This would further benefit both workers and the business, as although workers may not receive higher wages (as the machine takes over some of their work), they are better off in the long run as they have secure long-term employment.

Answered by Henry P. Economics tutor

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