Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It will increase, as higher productivity raises the marginal revenue product.
B
It will decrease, since fewer workers are needed for the same output.
C
It will remain unchanged, as productivity does not affect demand directly.
D
It will fluctuate randomly, depending on market conditions.
Understanding the Answer
Let's break down why this is correct
Answer
When a firm's productivity increases because of better training, it means that workers can produce more in the same amount of time. This improvement makes the firm more efficient, often leading to higher profits. As a result, the firm may need to hire more workers to keep up with the increased production or to expand its operations. For example, if a factory trains its employees to work faster and produce more goods, it might decide to hire additional workers to meet the growing demand for those goods. Overall, better training typically leads to an increased demand for labor as the firm seeks to maximize its output.
Detailed Explanation
When workers are better trained, they can produce more in the same time. Other options are incorrect because Some might think that if workers are more productive, fewer workers are needed; It's a common mistake to think productivity doesn't change demand.
Key Concepts
Demand for Labor
Marginal Product of Labor
Wage Structures
Topic
Demand and Supply in Labor Markets
Difficulty
easy level question
Cognitive Level
understand
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