All else equal, if a technological improvement increases the marginal product of workers, then the marginal revenue product of workers will _____, and the firms will hire _____ workers.
A) increase; more
B) increase; fewer
C) decrease; more
D) decrease; fewer

Question

Quizplus · Accepted Answer

The marginal revenue product of workers increases because each worker is now more productive, leading firms to hire more workers to capitalize on the higher productivity.

All Else Equal, If a Technological Improvement Increases the Marginal