What will be the longrun impact on prices of a reduction

Reference no: EM13840071

Consider two firms producing smart phones. One uses a highly automated robotics process, while the other uses human workers on an assembly line and pays overtime when there is heavy production demand.

Which firm will have higher profits in a recession? In a boom?
Which firm’s stock will have a higher beta?

According to supply-side economists, what will be the long-run impact on prices of a reduction in income tax rates?

Reference no: EM13840071

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