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:

Financial Planning

The process of strategically managing one’s financial affairs to meet life goals and secure financial future.

Financial Planning

The process of creating strategies to manage financial affairs and meet life goals, involving aspects of budgeting, investing, and saving.

Sales Growth

Sales growth is the increase in sales over a specific period, indicating the health and expansion rate of a business, typically expressed as a percentage.

Fixed Assets

Long-term tangible assets used in a company's operations, such as machinery, buildings, and equipment, that are not expected to be converted into cash within a year.