If a firm faces an upsloping labor supply curve (and there is no union or minimum wage), its
A) MRC curve is also upsloping.
B) MRC curve is perfectly elastic.
C) MRP curve is perfectly inelastic.
D) MRP curve is also upsloping.

Question

Quizplus · Accepted Answer

The marginal resource cost (MRC) curve is the same as the supply curve for the input, which is upsloping in this case. Therefore, the MRC curve will also be upsloping.

If a Firm Faces an Upsloping Labor Supply Curve (And