?

AP® Microeconomics

Free Version

Upgrade subject to access all content

Difficult

Perfectly-Competitive Factor Market: Improved Technology for Firm

APMICR-EWGSRN

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?

A

Both wage and quantity will increase.

B

Both wage and quantity will decrease.

C

Wage will increase, and quantity will decrease.

D

Wage will decrease, and quantity will increase.

E

Wage will remain the same, and quantity will increase.