Suppose that a technological innovation increases the marginal productivity in a perfectly competitive labour market. All the rest equal, at the new market equilibrium, O A. the number of workers employed raises, but the wage rate paid is lower O B. the level of employment and the wage rate are both higher OC. the wage rate and the employment level decrease O D. the wage rate increases, but employment is lower
Suppose that a technological innovation increases the marginal productivity in a perfectly competitive labour market. All the rest equal, at the new market equilibrium, O A. the number of workers employed raises, but the wage rate paid is lower O B. the level of employment and the wage rate are both higher OC. the wage rate and the employment level decrease O D. the wage rate increases, but employment is lower
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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