An increase in technology will cause a marginal revenue product of labor curve to
A) be unaffected because the productivity of labor has not changed.
B) shift to the left.
C) shift to the right.
D) become more inelastic.

Question

Quizplus · Accepted Answer

An increase in technology typically enhances the productivity of labor, making each worker more valuable to the firm. This increased productivity shifts the marginal revenue product of labor curve to the right, as each unit of labor can now produce more output, generating more revenue for the firm.

An Increase in Technology Will Cause a Marginal Revenue Product