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Sagot :
True.
An increase in the marginal product of labor (MPP) will shift the demand curve for labor rightward. This is because, with an increase in the MPP of labor, firms will be willing to pay higher wages for the same level of output, thus increasing labor demand.
When the MPP of labor increases, the demand curve shifts rightward, and the equilibrium wage increases. The increase in the MPP of labor can be attributed to a variety of factors. These include increases in technology, increases in capital investment, and changes in labor market regulations.
Additionally, the MPP of labor may increase due to changes in the composition of the labor force, such as an increase in the number of highly educated workers or a decrease in the number of low-skilled workers.
Overall, an increase in the MPP of labor will increase the demand for labor, which is reflected by an outward shift in the demand curve for labor.
Learn the importance of marginal product:
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