The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets.
TABLE 13-4
-Refer to Table 13-4.If plotted on a graph,the marginal revenue product curve for the "number of hours worked" would be the same as
A)the firm's marginal product curve,and would be downward sloping and concave to the origin.
B)the firm's marginal product curve,and would be downward sloping and convex to the origin.
C)the firm's demand curve for hours worked,and would be downward sloping and linear.
D)the firm's demand curve for yo-yos,and would be downward sloping and linear.
E)the firm's marginal revenue curve,and would be horizontal at $5 because this firm is operating in a competitive labour market.

Question

The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets.
  TABLE 13-4
-Refer to Table 13-4.If plotted on a graph,the marginal revenue product curve for the "number of hours worked" would be the same as
A)the firm's marginal product curve,and would be downward sloping and concave to the origin. 
B)the firm's marginal product curve,and would be downward sloping and convex to the origin. 
C)the firm's demand curve for hours worked,and would be downward sloping and linear. 
D)the firm's demand curve for yo-yos,and would be downward sloping and linear. 
E)the firm's marginal revenue curve,and would be horizontal at $5 because this firm is operating in a competitive labour market.

Quizplus · Accepted Answer

The marginal revenue product curve for labor is the firm's demand curve for labor, which is downward sloping and linear, reflecting the diminishing returns to additional hours worked.

The Table Below Shows the Total Production for Varying Numbers