Figure 12.1
Figure 12.1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies.
-Refer to Figure 12.1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram?
A) Nothing, because labour's productivity has not changed.
B) There will be a movement along the curve.
C) The curve shifts to the right.
D) We cannot answer the question without knowing if Dale would want to hire more workers.
Correct Answer:
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