How economics works here?

challenger

New member
In this scenario, coputers and laber are compliments --they are used together. Now that computers are cheaper, a firm will purchase more. Then it will be more workers to work on the computers. This will increase the demand for labor.
 
Suppose that in the competitive market for goods X, affirm is producing X by using two kinds of inputs: one is labour, and other is computers. Inputs markets are also competitive, and input prices are given for a firm. Now due to technological advance, the price of computer has decline significantly. Then what effect would be observed regarding a firm’s demand curve for labour?
 
A firms? A firms demand curve for labour would shift to the right (decreased demand) because it is relatively cheaper to use computers in the production process
 
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