If a Firm Acquires New Machines That Complement Labor

question 112

Multiple Choice

If a firm acquires new machines that complement labor

• A)there will be no effect on the marginal product of labor curve.
• B)the amount of labor services hired will decrease.
• C)the marginal revenue product of labor curve will shift upward.
• D)the marginal revenue product of labor curve will shift downwarD.

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Definitions:

Output

is the total amount of goods and services produced by an economy, firm, or production process.

Market Price

The actual selling price of a good or service in the marketplace, influenced by supply and demand.

Long Run

A period in which all factors of production and costs can be fully adjusted, including entry and exit of firms.

Economic Profits

Profits that exceed the opportunity costs of all inputs, indicating a return beyond the norm expected in competitive markets.