Figure 10.1
-Figure 10.1 depicts a firm's marginal revenue product curve. If the product price increases, the marginal revenue product curve

Question

Quizplus · Accepted Answer

When the product price increases, the marginal revenue product curve shifts upward. This happens because the additional revenue earned per unit of input (i.e. the marginal revenue product) increases as product price increases. This, in turn, increases the firm's willingness to pay for additional units of input, causing the curve to shift upward.

Figure 10.1 -Figure 10.1 Depicts a Firm's Marginal Revenue Product Curve. If