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Figure 14.1 Figure 14.1 Shows the Marginal Revenue Product for Dale's Hand-Sewn

Question 1

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Figure 14.1
  
Figure 14.1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies.
-Refer to Figure 14.1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram?

Figure 14.1
Figure 14.1     Figure 14.1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 14.1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram? A) Nothing, because labour'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 14.1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies.
-Refer to Figure 14.1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram?


A) Nothing, because labour'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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