Asked by
Karmin Hemraj
on Oct 12, 2024
Verified
Increases in the productivity of labor tend to
A) increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.
B) decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor.
C) increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor.
D) decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.
Marginal Revenue Product
The additional revenue generated from using one more unit of a factor of production, used to determine the optimal level of resource allocation.
Productivity
The measure of how efficiently goods and services are produced, often gauged by the output per unit of labor input.
Labor
The effort by individuals to produce goods or services in exchange for wages or salary.
- Analyze the impact of changes in productivity, market conditions, and technology on the marginal revenue product and wages.
- Investigate the relationship marginal revenue product holds with the demand for labor and inputs in a business context.
Verified Answer
MF
Learning Objectives
- Analyze the impact of changes in productivity, market conditions, and technology on the marginal revenue product and wages.
- Investigate the relationship marginal revenue product holds with the demand for labor and inputs in a business context.
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