Multiple Choice

Figure 18-4

-Refer to Figure 18-4.Assume that W₁
= $20 and W₂
= $22 and that the market stays in equilibrium.What would happen to the marginal product of labour if the labour demand curve shifts from D₁ to D₂
A) The shift decreases the value of the marginal product of labour by more than $2.
B) The shift decreases the value of the marginal product of labour by $2.
C) The shift increases the value of the marginal product of labour by less than $2.
D) The shift increases the value of the marginal product of labour by $2.
Correct Answer:
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