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Imagine a rm that employs two types of workers some with computer skills and others with no technology related skills. (i) If technology advances so
Imagine a rm that employs two types of workers some with computer skills and others with no technology related skills. (i) If technology advances so that computers become more useful to the rm, what happens to the marginal product of the two types of workers? (ii) What happens to equilibrium wages? Explain, using appropriate diagrams. {iii} Explain how a rm's production function is related to its marginal product of labour, how a rm's marginal product of labour is related to the value of its marginal product and how a rm 's value of marginal product is related to its demand for labour. {iv} Explain how the wage can adjust to balance the supply and demand for labour while simultaneously equalling the value of the marginal product of labour
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