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Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.

Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.

Labor

(Number of workers)

Output

(Cupcakes per day)

Marginal Product

of Labor

(Cupcakes per day)

Value of the Marginal

Product of Labor

(Cupcakes)

Wage

(Dollars per

worker per day)

Marginal Profit

(Dollars)

0 0 325
1 200 325
2 350 325
3 475 325
4 575 325

Refer to Table 18-6. Suppose that there is a technological advance that allows MadeFromScratch employees to produce more cupcakes than they could before. Because of this change, the firm's

a. supply of labor shifts right.
b. supply of labor shifts left.
c. demand for labor shifts right.
d. demand for labor shifts left.

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