An Increase in Technology in Fabric Design Changes Trisha's Marginal

question 98

Essay

An increase in technology in fabric design changes Trisha's marginal product of labor function from MP_L (L) = 0.5 - 0.01L to MP'_L(L) = 0.625 - 0.01L. If Trisha can sell all the output she desires at $120 and she must pay each unit of labor she employs $24, what effect does the change in technology have on labor employment?

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Definitions:

Open-ended Questions

Questions framed in a way that requires a detailed, descriptive answer, allowing for the expression of thoughts, feelings, or opinions, beyond a simple yes or no.

Qualitatively

Pertaining to or concerned with descriptions and distinctions made in terms of qualities rather than quantitative measurements.

Hypothesis Testing

A method used in scientific research to determine if there is sufficient evidence to support a predicted relationship or effect.

Replicate Previous Research

Replicating previous research involves conducting a new study based on the methodology of an existing study to validate or challenge its findings.