In a manufacturing plant, workers use a specialized machine to produce belts. A new machine is invented that is labor-saving. With the new machine, the firm can use fewer workers and still produce the same number of belts as it did using the old machine. In the long run, both labor and capital (the machine) are variable From what you know, what is the effect of this invention on the average product of labor (AP Subscript Upper L ).

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Business

Holt

31 March, 21:47

In a manufacturing plant, workers use a specialized machine to produce belts. A new machine is invented that is labor-saving. With the new machine, the firm can use fewer workers and still produce the same number of belts as it did using the old machine. In the long run, both labor and capital (the machine) are variable From what you know, what is the effect of this invention on the average product of labor (AP Subscript Upper L ).

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Dixie Kelley · Answer 1

The effect of the introduction of new machine on the average product of labor (APL) leads to mobility of labor which causes decrease of wages as a result workers move to different areas to get higher wages.

Explanation:This occurs like this because the machine introduced leads to mobility of labor, this mobility leads to decrease of labor and wages as workers will be force to move to areas of labor with higher wages.