If a publishing company purchases faster computers to speed up word processing,
A)the marginal product of its editors will increase, which will shift the demand for editors to the right
B)the marginal product of its editors will increase, which will shift the demand for editors to the left
C)the wages of its editors will increase, which will shift the demand for editors to the right
D)the wages of its editors will decrease, which will shift the demand for editors to the right
E)the supply of editors will decrease

Question

Quizplus · Accepted Answer

By purchasing faster computers, the marginal product of the editors will increase, meaning they can produce more work in less time. This will increase the demand for editors as the company can now produce more content than before. This shift in demand will be to the right as the company will need more editors to keep up with the increased production.

If a Publishing Company Purchases Faster Computers to Speed Up