The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose)is under consideration. Figure 31.1 In Figure 31.1, the curve B indicates:

Question

The figure given below represents an imperfectly competitive resource market.Here common land (and not land used for specific purpose)is under consideration. Figure 31.1  In Figure 31.1, the curve B indicates:

Quizplus · Accepted Answer

Curve B represents the marginal revenue product (MRP) curve for land. MRP is the additional revenue generated by a firm by using an additional unit of a resource (in this case, land). This curve shows the relationship between the quantity of land employed and the marginal revenue generated. The firm will employ land up to the point where MRP equals the price of land, which is shown by the horizontal line intersecting the MRP curve. Therefore, choice B is the correct answer.

The Figure Given Below Represents an Imperfectly Competitive Resource Market