A decrease in the productivity of a factor of production will
A) shift its marginal revenue product curve to the right.
B) shift its marginal revenue product curve to the left.
C) cause a firm to move down the marginal revenue product curve.
D) cause a firm to move up the marginal revenue product curve.

Question

Quizplus · Accepted Answer

A decrease in the productivity of a factor of production makes it less valuable for producing output, thus reducing its marginal revenue product. This is represented by a leftward shift in the marginal revenue product curve.

A Decrease in the Productivity of a Factor of Production