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Figure 16-1 Shows the Marginal Revenue Product for Dale's Hand-Sewn

Question 4

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Figure 16-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 16-1. Suppose the market price of doilies rises to $3. What happens to the curve given in the diagram? A) Nothing, because labor's productivity has not changed. B) There will be a movement along the curve. C) The curve shifts to the right. D) We cannot answer the question without knowing if Dale would want to hire more workers.
Figure 16-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies.
-Refer to Figure 16-1. Suppose the market price of doilies rises to $3. What happens to the curve given in the diagram?


A) Nothing, because labor's productivity has not changed.
B) There will be a movement along the curve.
C) The curve shifts to the right.
D) We cannot answer the question without knowing if Dale would want to hire more workers.

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