If a technological advance increases a firm's labor productivity,we would expect the firm's:

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When a technological advance increases a firm's labor productivity, the firm can produce more output with the same amount of labor input. This means that the firm's marginal cost of producing each additional unit of output will decrease. As a result, the firm's average total cost (ATC) will also decrease, as ATC is the sum of all the firm's costs divided by the quantity of output produced. Therefore, we would expect the firm's average total cost to fall.

If a Technological Advance Increases a Firm's Labor Productivity,we Would