An increase in technology in fabric design changes Trisha's marginal product of labor function from MP_L (L) = 0.5 - 0.01L to MP'_L(L) = 0.625 - 0.01L. If Trisha can sell all the output she desires at $120 and she must pay each unit of labor she employs $24, what effect does the change in technology have on labor employment?

Question

Quizplus · Accepted Answer

The Answer of An increase in technology in fabric design changes Trisha's marginal product of labor function from MP_L (L) = 0.5 - 0.01L to MP'_L(L) = 0.625 - 0.01L. If Trisha can sell all the output she desires at $120 and she must pay each unit of labor she employs $24, what effect does the change in technology have on labor employment?

An Increase in Technology in Fabric Design Changes Trisha's Marginal