The SAS curve will be steeper the
A)greater is the marginal product of each additional worker.
B)greater is MC.
C)greater is the nominal wage.
D)the faster the MPN falls for each additional worker.

Question

Quizplus · Accepted Answer

The SAS (Short-Run Aggregate Supply) curve will be steeper if the marginal product of labor (MPN) decreases faster for each additional worker, as this implies that adding more labor leads to smaller increases in output, making the supply less responsive to price changes.

The SAS Curve Will Be Steeper the