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Homework answers / question archive / 2
2. Joe's espresso machine allows his baristas to make 2 espressos at once, but then Joe decides to buy a new machine that lets his baristas make up to 4 espressos at once. How will the baristas' wages change? (1 point)
Baristas wages will increase because as we can see output of barista has increased from 2 expressos to 4 expressos. As output will increase it will lead to increase in firm's profitability thus letting baristas demand higher wage.
