Which of the following is an example of automation benefiting producers?

• A. Workers receive higher wages due to increased demand for labor.
• B. Consumers use online platforms to compare prices before purchasing.
• C. A factory installs robotic arms to assemble products faster and with fewer errors.
• D. Government increases taxes on imported machinery.

Answer: (C)

Verified step by step guidance

1. Identify the concept of automation in microeconomics: Automation refers to the use of technology or machines to perform tasks that were previously done by human labor, often leading to increased efficiency and reduced production costs for producers.
2. Analyze each option to see if it reflects automation benefiting producers:
3. Option 1: 'Workers receive higher wages due to increased demand for labor' relates to labor market dynamics but does not directly involve automation benefiting producers.
4. Option 2: 'Consumers use online platforms to compare prices before purchasing' involves consumer behavior and technology but does not directly benefit producers through automation.
5. Option 3: 'A factory installs robotic arms to assemble products faster and with fewer errors' clearly shows automation improving production efficiency, reducing errors, and benefiting producers by lowering costs and increasing output.