Table 18-2
Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells golf balls for 50 cents each and pays the workers a wage of $30 a day.

-Refer to Table 18-2.Suppose that there is a technological advance that allows Davis Golf Balls,Inc.employees to produce more golf balls than they could before.Because of this change,

Question

Table 18-2
Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells golf balls for 50 cents each and pays the workers a wage of $30 a day.
 
-Refer to Table 18-2.Suppose that there is a technological advance that allows Davis Golf Balls,Inc.employees to produce more golf balls than they could before.Because of this change,

Quizplus · Accepted Answer

With the technological advance, the productivity of labor has increased, and the firm can now produce more golf balls with the same amount of labor. As a result, the marginal product of labor has increased, and the firm's demand for labor would shift to the right as they would want to employ more workers to take advantage of the increased productivity.

Table 18-2 Consider the Following Daily Production Data for Davis Golf Balls