An Advance in Technology Which Increases Labor Productivity Will Shift

question 126

Multiple Choice

An advance in technology which increases labor productivity will shift the:

• A) labor demand curve to the left.
• B) MFC curve to the left.
• C) MP curve downward.
• D) labor demand curve to the right.
• E) product demand to the right.

Understand the behavior of firms in perfectly competitive markets, including how prices and outputs are determined.

Analyze the relationship between total revenue (TR), total cost (TC), marginal revenue (MR), and marginal cost (MC) and their implications for profit maximization.

Interpret demand curves and how they affect the pricing and output decisions of perfectly competitive firms.

Calculate profit maximizing levels of output using marginal analysis.

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Definitions:

Accounts Receivable

Receivables from customers against goods or services supplied by a business, pending payment.

Capital Statement

A financial statement that illustrates changes in a company's equity over a certain period, including investments, withdrawals, and net income or loss.

Net Income

The total earnings of a company after deducting all expenses and taxes, indicating the company's profitability over a specific period.

Capital Balances

The amount of money that partners or shareholders have invested in a company; this also includes profits that have not been withdrawn.