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24 January, 11:09

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

a. Which firm will have higher profits in a recession? Robotics firm Workers firm

b. Which firm will have higher profits in a boom? Robotics firm Workers firm

c. Which firm's stock will have a higher beta? Robotics firm Workers firm

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  1. 24 January, 11:17
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    Answer:A
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