Would an increase in the productivity of labor lead to an increase or a decrease in the demand for labor? Why?
An increase in productivity would lead to an increase in the marginal revenue product of labor. With a higher marginal revenue product we would expect to see an increase in demand. A firm would be likely to utilize more labor and less of other resources if labor has become more productive.
Economics
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The most common form of price discrimination in international trade is
A) dumping. B) non-tariff barriers. C) Voluntary Export Restraints. D) preferential trade arrangements. E) product boycotts.
Economics
Negative supply shocks can have a tendency to ________ costs of production and ________ the inflation rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Economics