A reduction in the workers' marginal productivity would result in

Question

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A reduction in the workers' marginal productivity means that each additional worker hired contributes less to the firm's output. As a result, the firm may reduce its demand for labor, leading to a decrease in the equilibrium wage rate. This would occur because the market would now be able to clear at a lower wage rate due to the reduction in the demand for labor. An increase in labor supply (A) or equilibrium employment level (B) is unlikely because the demand for labor has decreased. A decrease in labor supply (D) would only occur if there were external factors such as changes in demographics or immigration policies.

A Reduction in the Workers' Marginal Productivity Would Result in