Question

Technology can either shift the labor demand to the right or to the left, depending on its effect on the marginal product of labor. If we find that technology has shifted the labor demand to the left, this is a(n) ______________ to labor.

Answer 1

Answer:

If we find out that technology has shifted the labor demand to the left, this is a disadvantage to labor.

Explanation:

To begin with, It's important to properly understand the concept of Marginal Product of Labour.

In simple terms, marginal product of labor is basically the change in unit output occasioned by a unit change in labor. There are a number of factors that may cause a marginal change in labor. Suffix to say, marginal change can either be to the right or to the left.

To narrow it down, we have technology to consider as one of the factors that ensue marginal change. Even more, this change can either be to the right or left. That is, an increase in technology might result to an increase in unit labour - this is to the right. And this is beneficial or advantageous to labor. In same vein, a increase in technology might result to a decrease in unit labour - this is to the left. And this is disadvantageous to labor.

It's on established record that introduction of new technologies, procedures and processes often have a direct effect on an individual employee. This altogether affects the marginal product in labour.

Hence, when technology brings changes to the left, this is a disadvantage to labour, as there is possibly a downsizing or reduction in labor strengths occasioned by the new technologies.

Answer 2

Answer:

If technology shift labour demand to the left, this is a decrease to labor.

Explanation:

Marginal productivity of labor is the change in output of a firm as a result of an additional units of labor.

Shift in demand for labor could be as a result of

1) Price of other factors of production such as land or capital.

2) Price of the firm's output.

3) Change in technology.

Technology helps to increase output in a firm.

A change in technology may either shift demand for labor to the right or to the left.

A shift to the right is implies an increase in the marginal productivity of labor.

A shift to the left implies a decrease in the marginal productivity of labor.

This means that less labor Will be required.