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

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Chapter12: The Cost Of Production
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65. 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

Expert Solution
Step 1

Marginal Product can be defined as the additional unit of output generated due to employment of an additional unit of input.

Marginal Revenue Product of a resource can be defined as the increased revenue that is being earned due to the employment of an additional unit of that resource.

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