The marginal revenue product of labor curve will always shift to the left if
A) the wage rate falls.
B) product demand decreases and product price decreases.
C) product demand increases and product price increases.
D) the price of capital falls.

Question

Quizplus · Accepted Answer

The marginal revenue product of labor curve shifts to the left when product demand decreases and product price decreases because the value of the additional output produced by labor falls, making employers less willing to pay for additional labor.

The Marginal Revenue Product of Labor Curve Will Always Shift