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After Giselle Increased Worker Training at Her Company, the Output

Question 49

Multiple Choice

After Giselle increased worker training at her company, the output per worker rose by 5%. What impact would this have on labor's marginal revenue product and her demand for labor?


A) Marginal revenue product would rise, and demand for labor would decrease.
B) Marginal revenue product would decrease, and demand for labor would increase.
C) Both marginal revenue product and demand for labor would increase.
D) Both marginal revenue product and demand for labor would decrease.

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