Perfectly-Competitive Factor Market: Improved Technology for Firm
If only one firm in a perfectly competitive factor market has access to a new machine that increases worker productivity, which of the following will happen to the equilibrium wage and quantity of workers for that firm?
Both wage and quantity will increase.
Both wage and quantity will decrease.
Wage will increase, and quantity will decrease.
Wage will decrease, and quantity will increase.
Wage will remain the same, and quantity will increase.