A Major Computer Software Company Maintains a Technical Support Center

question 120

Multiple Choice

A major computer software company maintains a technical support center in a rural area and is the only employer in this region. Suppose the firm develops a new software system for managing technical support calls, and the marginal product of labor increases. What happens to the equilibrium outcome in this labor market?

• A) Labor demand shifts rightward, equilibrium wage and employment levels decline.
• B) Labor demand shifts rightward, equilibrium wage and employment levels increase.
• C) Labor demand curve remains the same, equilibrium wage and employment levels increase.
• D) Labor demand curve remains the same, equilibrium wage and employment do not change.
• E) none of the above

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Definitions:

Logical Process

refers to a methodical, rational approach to reasoning and problem-solving, often following a clear sequence of steps.

Political Model

A framework used to analyze the power dynamics, conflicts, and interests within organizations or governmental structures.

Environmental Forces

External factors such as social, economic, technological, competitive, and regulatory conditions that influence an organization's operations.

French Organizations

are entities or groups operating in France, often characterized by specific cultural and regulatory frameworks unique to the French context.