Assume that the firm buys a machine for each worker that


Assume that the firm buys a machine for each worker that increases the marginal productivity of each worker, which would be reflected by an increase in the total product, marginal product, and value of marginal product columns. What would traditional economic theory say would happen to the number of workers the firm would be willing to employ at each wage rate? (The downsloping portion of the value of marginal product or marginal revenue product curve is, after all, the firm's demand for labor curve, and the curve just shifted to the right). Do you agree? Do you think that an increase in the marginal productivity of labor will necessarily result in an increase in employment? Why or why not?

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Microeconomics: Assume that the firm buys a machine for each worker that
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