An increase in the level of technology, A, causes:
A)an increase in the MPL
B)a decrease in the MPL
C)a movement along the MPL hiring more labour.
D)a movement along the MPL hiring less labour.

Question

Quizplus · Accepted Answer

An increase in the level of technology leads to an increase in the marginal product of labor (MPL) because improved technology typically makes the production process more efficient, enabling workers to produce more goods or services per unit of time. Therefore, an increase in A will shift the MPL curve upward, resulting in an increase in the productivity of each worker.

An Increase in the Level of Technology, A, Causes