An Improvement in Technology That Allows Workers to Process Twice

question 57

Multiple Choice

An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause

• A) more labor to be employed because its marginal revenue product has fallen.
• B) an increase in insurance premiums.
• C) fewer workers to be employed because their marginal revenue product has decreased.
• D) more workers to be employed because their marginal revenue product has increased.
• E) fewer workers to be employed because their marginal revenue product has increased.

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Definitions:

Competitive Advantage

An edge a company has over its competitors, allowing it to generate greater sales or margins and retain more customers.

Shelf Space

The amount of area available for displaying products within a retail store, critical for product visibility and sales.

Different Scale

Often related to the concept of economies or diseconomies of scale, indicating variations in cost or production efficiency depending on the size of operations.

Hourly Wages

The rate of pay that an employee receives for each hour of work.