Which of the following will lead to an upward shift of a competitive firm's marginal value product curve for labor?
A)A decrease in the price of the final product
B)An increase in the wage rate
C)An increase in the amount of other inputs used
D)A decrease in the demand for the final product

Question

Quizplus · Accepted Answer

The marginal value product curve for labor will shift upward if the productivity of labor increases, which can happen through an increase in the amount of other inputs used. This makes each unit of labor more productive, thereby increasing the value of the marginal product of labor.

Which of the Following Will Lead to an Upward Shift