Table 18-4
Consider the following daily production data for Wills Golf Balls.Wills sells golf balls for $2.50 cents each and pays the workers a wage of $325 per day.

-Refer to Table 18-4.Suppose that there is a technological advance that allows Wills employees to produce more golf balls than they could before.Because of this change,

Question

Table 18-4
Consider the following daily production data for Wills Golf Balls.Wills sells golf balls for $2.50 cents each and pays the workers a wage of $325 per day.
 
-Refer to Table 18-4.Suppose that there is a technological advance that allows Wills employees to produce more golf balls than they could before.Because of this change,

Quizplus · Accepted Answer

With the technological advance that allows Wills employees to produce more golf balls than before, the firm will require more labor, so the demand for labor will shift to the right. This is because the company can now produce a higher output using the same amount of inputs, increasing their profitability, which encourages them to increase production, and hire more workers, increasing the demand for labor.

Table 18-4 Consider the Following Daily Production Data for Wills Golf Balls.Wills