(a) If WM = Wp, from what type of labor market does the firm hire its workers?
(b) Assume the productivity of workers increases as a result of improvement in technology. What will happen to each of the following in the short run?
The market demand for labor
(ii) The wage rate the firm will pay. Explain.Market Firm S. W W- -MFC M MRP QM Quantity QF Quantity "M. of Labor of Labor Wage RWage