Question

Explain how the following events would affect the demand for labor.

a. A new education program administered by the company increases labor's marginal product.

b. The firm completes a new plant with a larger workspace and new machinery that workers can utilize and that does not substitute for the functions provided by workers' labor.

Short answer

a. Increase in demand for labor.

b. Increase in demand for labor.

Step-by-step solution

Introduction

While creating labour and products, organizations require work and capital as contributions to their creation interaction. The demand for work is a financial matters guideline got from the demand for a company's result. That is, on the off chance that demand for a company's result builds, the firm will demand more work, in this manner employing more staff.

Explanation Part (a)

Another schooling program controlled by the organization expands work's minor item When the negligible result of the firm builds, its minimal income item will likewise increment, as MRP=MP * P. At the point when peripheral income result of the work builds, its demand for work will likewise increment.

Explanation Part (b)

The firm finishes another plant with an enormous work area and another hardware that specialists can use and that doesn't fill in for the capacities given by laborers' work. The new hardware will require more laborers to proficiently work it. Besides, since the firm presently has a more noteworthy work area for laborers and hardware, the demand for work will increment.