A technological improvement that causes an increase in the marginal product of a resource will
A)decrease the demand for the resource.
B)increase the demand for the resource.
C)decrease the marginal revenue product.
D)increase the marginal resource cost.

Question

Quizplus · Accepted Answer

An increase in the marginal product of a resource makes that resource more productive, which typically increases the demand for it as firms seek to utilize the more efficient resource to increase output.

A Technological Improvement That Causes an Increase in the Marginal