Part 2
a. A new education program administered by the company increases labor's marginal product.
If a new education program is implemented by the company and it improves the skills and productivity of the labor force, it would increase labor's marginal product. As a result, the company would be able to produce more output for the same amount of labor input. This would create a higher demand for labor as the company would now require more workers to take advantage of the increased productivity. Therefore, the demand for labor would increase.
Part 3
The demand for labor would increase.
Explain how the following events would affect the demand for labor.
Part 2
a. A new education program administered by the company increases labor's marginal product.
Part 3
The demand for labor would---a.remain unchanged, b. decrease, c. increase--.
3 answers
b. The firm completes a new plant with a larger workspace and new machinery that workers can utilize and that does not substitute for the functions provided by workers' labor.
Part 5
The demand for labor would--a.remain unchanged, b. decrease, c. increase--.
Part 5
The demand for labor would--a.remain unchanged, b. decrease, c. increase--.
Part 5
b. The demand for labor would decrease.
If a firm completes a new plant with a larger workspace and new machinery that does not substitute for the functions provided by workers' labor, it implies that the new machinery can complement and enhance the productivity of the workers. With the increased workspace and improved machinery, the firm can produce more output with the same amount of labor or potentially even with fewer workers. As a result, the firm would require fewer workers, leading to a decrease in the demand for labor.
b. The demand for labor would decrease.
If a firm completes a new plant with a larger workspace and new machinery that does not substitute for the functions provided by workers' labor, it implies that the new machinery can complement and enhance the productivity of the workers. With the increased workspace and improved machinery, the firm can produce more output with the same amount of labor or potentially even with fewer workers. As a result, the firm would require fewer workers, leading to a decrease in the demand for labor.