Essay
An increase in technology in fabric design changes Trisha's marginal product of labor function from MPL (L) = 0.5 - 0.01L to MP'L(L) = 0.625 - 0.01L. If Trisha can sell all the output she desires at $120 and she must pay each unit of labor she employs $24, what effect does the change in technology have on labor employment?
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Trisha's original marginal revenue of th...View Answer
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