An deterioration in technology will cause a marginal revenue product of labor curve to
A) be unaffected because the productivity of labor has not changed.
B) shift to the left.
C) shift to the right
D) become more elastic.

Question

Quizplus · Accepted Answer

A deterioration in technology reduces the productivity of labor, leading to a decrease in the value of the marginal product of labor. This is represented by a leftward shift in the marginal revenue product of labor curve.

An Deterioration in Technology Will Cause a Marginal Revenue Product