The demand curve for a variable factor is always
A) steeper than that factor's MRP curve.
B) that factor's MPP curve.
C) flatter than that factor's MRP curve.
D) that factor's MRP curve.
E) that factor's marginal cost curve.

Question

Quizplus · Accepted Answer

The demand curve for a variable factor is the same as the Marginal Revenue Product (MRP) curve because it represents the additional revenue generated by using one more unit of the variable factor. Therefore, the correct answer is D) that factor's MRP curve.

The Demand Curve for a Variable Factor Is Always