Suppose in the graph to the right DF1 is the demand (MRP) curve for computer graphics designers for a website production firm. Suppose the firm switched from Windows computers to Macintoshes making the workers more productive. This would actually cause an increase in demand for graphics designers at the firm.

    Any factor which makes an input more productive will lead to an increase it its demand by a profit maximizing firm (this always seems surprising at first). This is because increased productivity increases MRP (shifts out) making the input more cost effective. Recall, that the MRP is the factor demand curve and thus a shift out in the MRP is a shift out in the factor demand curve.

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