Refer to the graph, where TP = total product and L = labor input. If this graph is for a firm that sells its product in a purely competitive market, then its marginal revenue product of labor (MRP)
A)is constant at all levels of L.
B)increases at an increasing rate as L increases.
C)decreases as the labor input L increases.
D)increases at a decreasing rate as L increases.

Question

Refer to the graph, where TP = total product and L = labor input. If this graph is for a firm that sells its product in a purely competitive market, then its marginal revenue product of labor (MRP)
A)is constant at all levels of L. 
B)increases at an increasing rate as L increases. 
C)decreases as the labor input L increases. 
D)increases at a decreasing rate as L increases.

Quizplus · Accepted Answer

The Answer of  Refer to the graph, where TP = total product and L = labor input. If this graph is for a firm that sells its product in a purely competitive market, then its marginal revenue product of labor (MRP)
A)is constant at all levels of L. 
B)increases at an increasing rate as L increases. 
C)decreases as the labor input L increases. 
D)increases at a decreasing rate as L increases.

Refer to the Graph, Where TP = Total Product and L