Suppose That a New Invention Decreases the Marginal Productivity of Labor,shifting

question 409

Multiple Choice

Suppose that a new invention decreases the marginal productivity of labor,shifting labor demand to the left.Such an invention would be an example of

• A) labor-saving technology.
• B) labor-augmenting technology.
• C) Luddite technology.
• D) supply-shifting technology.

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Definitions:

Raw Materials

Basic materials and substances used in the initial stages of the production process, destined to be transformed into finished goods.

Direct Labour

The cost of workers who are directly involved in the production of goods or services.

Manufacturing Overhead

The indirect costs associated with the production process, including utilities, rent, and maintenance expenses of manufacturing facilities.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead costs.