Question

In: Economics

Suppose a popular frying technique becomes illegal, decreasing the marginal products of fry cooks. After this...

Suppose a popular frying technique becomes illegal, decreasing the marginal products of fry cooks. After this technological change, a local fry establishment's demand for fry cooks is likely to

Group of answer choices

remain unchanged

change indeterminately

increase

decrease

Solutions

Expert Solution

Because a frying technique becomes illegal , decreasing the marginal products of fry cooks. After this technological change , local fry establishment's demand for fry cooks is likely to decrease. As marginal product decreases , demand for fry cooks decreases. Hence, option(D) is correct.


Related Solutions

Suppose a monopoly produces products that exhibit negative externalities. The marginal private benefit associated with a...
Suppose a monopoly produces products that exhibit negative externalities. The marginal private benefit associated with a monopoly’s consumption is MPB = 360-4Q and the marginal revenue associated with its production is MR = 360-8Q The marginal private cost associated with its production is MPC = 6Q The marginal external cost associated with its production is MEC = 2Q Please draw all the above in one graph and answer the following questions: 1). Find the social optimum (Q* and P*) (5...
Suppose you have used the following Production Function to estimate the Industry’s average and marginal products for its inputs:
 Suppose you have used the following Production Function to estimate the Industry’s average and marginal products for its inputs:Q = 150 L1/4K1/2M1/5.      Where Q stands for output; L is labor; K is capital (machine hors) and M is management;Say, you currently have 120 full-time employees, and 20 Managers and use 200 units of machine hours per day.What are the average product of your labor and managers at current level of inputs?What are the marginal products of labor and managers?Does this...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT