Multiple Choice
In 2002, BMW made a tactical decision to use a robot to attach the gearbox to the engines of its vehicles instead of using two workers as it had done previously. The robot method had a higher cost but installed the gearbox in exactly the right position. In making this decision, BMW
A) faced a trade -off between higher cost and lower precision (in installing the gearbox in exactly the right position) .
B) adopted a negative technological change because it replaced workers with robots.
C) eroded some of its competitiveness in the luxury car market because of its increased cost of production.
D) faced no trade -offs because the robot method increased efficiency.
Correct Answer:
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