Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers?

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28-04-2020
Business

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Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers?

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ogorwyne ogorwyne · Answer 1 · 2020-04-29T09:10:31+02:00

ogorwyne ogorwyne

29-04-2020

Answer:

The equilibrium wage increased, and the equilibrium quantity of labor increased.

Explanation:

The marginal product of labour for computer programmers is the change in total output as one additional unit of labour is added to production.

In the labor market for computer programmers, Holding all else equal, This would cause an increase in the equilibrium wage and an increase in the equilibrium quantity of labor.

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