Question: In a manufacturing plant workers use a specialized machine to

In a manufacturing plant, workers use a specialized machine to produce belts. A new machine is invented that is laborsaving. 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 APL, MPL, and returns to scale? If you required more information to answer this questions, specify what you need to know.

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  • CreatedNovember 13, 2014
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