Given that other inputs are kept fixed,the input demand curve for an output market monopolist is equal to the:
A)marginal value product curve.
B)marginal revenue product curve.
C)marginal cost curve.
D)marginal product curve.

Question

Quizplus · Accepted Answer

The input demand curve for a monopoly firm in the output market is equal to the marginal revenue product (MRP) curve. This is because a monopolist aims to maximize its profit, which is achieved by equating the marginal revenue product of an input (i.e. the additional revenue generated by employing one more unit of the input) with its marginal cost. Therefore, the input demand curve shows the quantity of an input that a monopolist is willing to hire at different input prices, and it is equal to the MRP curve. Consequently, options A, C, and D are incorrect choices.

Given That Other Inputs Are Kept Fixed,the Input Demand Curve