In ________, changes in technology affect the marginal revenue product of a unit of labor input. In ________, changes in technology affect the marginal cost of a unit of output.
A) the product market; the labor market
B) output markets; input markets
C) the labor market; the product market
D) all markets; all markets

Question

Quizplus · Accepted Answer

In the labor market, technological advancements can increase the productivity of labor, thereby affecting the marginal revenue product of labor. In the product market, technological changes can influence the production process, impacting the marginal cost of producing a unit of output.

In ________, Changes in Technology Affect the Marginal Revenue Product