The graph shows a firm that buys its inputs and sells its output in competitive markets. If the firm develops a new technology that increases labor productivity, the equilibrium level of employment for this firm is expected to be
A)L₀ .
B)zero.
C)lower than L₀ .
D)higher than L₀ .

Question

The graph shows a firm that buys its inputs and sells its output in competitive markets. If the firm develops a new technology that increases labor productivity, the equilibrium level of employment for this firm is expected to be
A)L₀ . 
B)zero. 
C)lower than L₀ . 
D)higher than L₀ .

Quizplus · Accepted Answer

The Answer of  The graph shows a firm that buys its inputs and sells its output in competitive markets. If the firm develops a new technology that increases labor productivity, the equilibrium level of employment for this firm is expected to be
A)L₀ . 
B)zero. 
C)lower than L₀ . 
D)higher than L₀ .

The Graph Shows a Firm That Buys Its Inputs and Sells