The diagram below shows the MRP curve for a firm producing high school math textbooks. The factor of production being considered here is hours of labour. FIGURE 13- 2
-Refer to Figure 13- 2. Suppose this firm initially has the marginal revenue product curve MRP1. One reason that the curve could shift to MRP3 is
A) an increase in the wage rate.
B) an increase in the marginal product of labour.
C) an increase in demand for the firm's output, math textbooks.
D) a decrease in the market price of math textbooks.
E) a decrease in the supply of labour.

Question

The diagram below shows the MRP curve for a firm producing high school math textbooks. The factor of production being considered here is hours of labour.  FIGURE 13- 2
-Refer to Figure 13- 2. Suppose this firm initially has the marginal revenue product curve MRP1. One reason that the curve could shift to MRP3 is
A) an increase in the wage rate. 
B) an increase in the marginal product of labour. 
C) an increase in demand for the firm's output, math textbooks. 
D) a decrease in the market price of math textbooks. 
E) a decrease in the supply of labour.

Quizplus · Accepted Answer

The Answer is D

The Diagram Below Shows the MRP Curve for a Firm