In a standard economic model where output per worker is plotted on the vertical axis and the number of workers employed is on the horizontal axis, a fundamental assumption is that each worker produces a fixed amount of output. If a nationwide technological innovation permanently increases the amount of output each worker can produce, how would this change be depicted on the graph?

According to a foundational assumption in a common economic model of the labor market, if a firm doubles its workforce from 100 to 200 employees, the average output produced by each of the 200 workers will be lower than the average output produced by the original 100 workers.

Production Data Analysis

Productivity Calculation and Model Assumption

In an economic model where output per worker is plotted on the vertical axis and the number of workers is on the horizontal axis, the core assumption that each worker's contribution to total output remains the same regardless of how many people are employed means the productivity curve will be a ________ line.