The introduction of automatic elevator equipment allowed firms to handle the movement of people in a multistory building at less cost, thus decreasing the demand for elevator operators. The best explanation for this change is that the
A)marginal product of elevator operators was equal to its price.
B)marginal product of automatic elevator equipment was equal to its price.
C)marginal product of automatic elevator equipment divided by its price was greater than that for elevator operators.
D)marginal product of elevator operators divided by its price was greater than that for automatic elevator equipment.

Question

Quizplus · Accepted Answer

The introduction of automatic elevator equipment made it more cost-effective than employing elevator operators because the ratio of the marginal product to its price for the equipment was higher than that for the operators, indicating a more efficient use of resources.

The Introduction of Automatic Elevator Equipment Allowed Firms to Handle