A technological improvement that causes an increase in the marginal product of a resource will
A) decrease the demand for the resource.
B) increase the demand for the resource.
C) decrease the marginal revenue product.
D) increase the marginal resource cost.

Question

Quizplus · Accepted Answer

An increase in the marginal product of a resource means that the resource can now produce more output than before with the same amount of input. Therefore, its value has increased, and firms will demand more of it, increasing demand for the resource.

A Technological Improvement That Causes an Increase in the Marginal