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Figure: The Value of the Marginal Product Curve
-(Figure: The Value of the Marginal Product Curve)Use Figure: The Value of the Marginal Product Curve.In the figure,if a technological advance makes labour more productive and everything else stays the same,then the profit-maximizing quantity of labour:
A) will increase.
B) will decrease.
C) will stay the same.
D) cannot be determined.

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Use the following to answer questions :
Figure: The Value of the Marginal Product Curve 
-(Figure: The Value of the Marginal Product Curve)Use Figure: The Value of the Marginal Product Curve.In the figure,if a technological advance makes labour more productive and everything else stays the same,then the profit-maximizing quantity of labour:
A) will increase. 
B) will decrease. 
C) will stay the same. 
D) cannot be determined.

Quizplus · Accepted Answer

When a technological advance makes labour more productive, the value of the marginal product of labour increases, which in turn increases the demand for labour. As a result, firms will hire more labour, and the profit-maximizing quantity of labour will increase.

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