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. Assume that the firm is a perfect competitor and the price of the firm's output is fixed. We know that the firm's MRP curve is
A) steeper than the firm's marginal product curve for labour.
B) flatter than the firm's marginal product curve for labour.
C) the same shape as the firm's marginal revenue curve.
D) horizontal, if the firm is perfectly competitive.
E) the same shape as the firm's marginal product curve for 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. Assume that the firm is a perfect competitor and the price of the firm's output is fixed. We know that the firm's MRP curve is
A) steeper than the firm's marginal product curve for labour. 
B) flatter than the firm's marginal product curve for labour. 
C) the same shape as the firm's marginal revenue curve. 
D) horizontal, if the firm is perfectly competitive. 
E) the same shape as the firm's marginal product curve for labour.

Quizplus · Accepted Answer

In a perfectly competitive market, the Marginal Revenue Product (MRP) curve is the same shape as the Marginal Product (MP) curve for labor because MRP is calculated as the marginal product of labor times the fixed price of the output.

The Diagram Below Shows the MRP Curve for a Firm