Final answer:
The introduction of a CAM system in a manufacturing plant will reduce labor costs by automating processes previously done manually.
Step-by-step explanation:
The type of cost that will reduce with the introduction of a CAM (Computer-Aided Manufacturing) system in a manufacturing plant is labor cost. When a plant introduces a CAM system, it automates many processes that were previously performed manually. This reduction in the need for manual labor can lead to decreased labor costs. However, it's important to note that while labor costs decline, capital costs might increase due to the investment in the new CAM system. The adoption of more machinery in the production process, as indicated by the comparative examples provided, reflects a shift from labor-intensive methods to more capital-intensive ones, which is aligned with the introduction of CAM systems.