A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data in the table. At the market wage rate of $30 and product price of $5, this firm will
A)hire the same number of laborers in both situations.
B)increase the number of laborers hired from 4 to 6.
C)decrease the number of laborers hired from 4 to 3.
D)increase the number of laborers hired from 4 to 5.

Question

A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data in the table. At the market wage rate of $30 and product price of $5, this firm will
A)hire the same number of laborers in both situations. 
B)increase the number of laborers hired from 4 to 6. 
C)decrease the number of laborers hired from 4 to 3. 
D)increase the number of laborers hired from 4 to 5.

Quizplus · Accepted Answer

The Answer of  A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data in the table. At the market wage rate of $30 and product price of $5, this firm will
A)hire the same number of laborers in both situations. 
B)increase the number of laborers hired from 4 to 6. 
C)decrease the number of laborers hired from 4 to 3. 
D)increase the number of laborers hired from 4 to 5.

A Firm Operating in Competitive Input and Output Markets Purchases