A new productivity breakthrough in computer technology is announced; as a result, the marginal product of...
A new productivity breakthrough in computer technology is announced; as a result, the marginal product of labour will double next year. What happens to current employment and the real wage rate? (Please provide sufficient./reasonable/ detail explanation)
A) Both employment and the real wage rate would increase.
B) Both employment and the real wage rate would decrease.
C) Employment would increase and the real wage would decrease.
D) Employment would decrease and the real wage would increase.
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A new productivity breakthrough in computer technology is announced; as a result, the marginal product of...
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