The graphs below depict the production function and labor market for an imaginary economy. The economy is, initially, at points x and X.
Figure 1 Figure 2
-An advance in technology shifts the production function upward and shifts the labor

Question

The graphs below depict the production function and labor market for an imaginary economy. The economy is, initially, at points x and X.
  Figure 1 Figure 2
-An advance in technology shifts the production function upward and shifts the labor

Quizplus · Accepted Answer

An advance in technology would allow firms to increase their production with the same amount of labor input or to produce the same amount of output with less labor input. As a result, the marginal product of labor and the value of the marginal product of labor would increase, causing the firms to demand more labor at any given wage rate. This would shift the labor demand curve rightward.

The Graphs Below Depict the Production Function and Labor Market