Table 11.4
$$\begin{array} { | c | c | c | }
\hline \text { Number of Workers } & \begin{array} { c }
\text { Total } \
\text { Froduct }
\end{array} & \begin{array} { c }
\text { Product } \
\text { Price } ( \$ )
\end{array} \
\hline 0 & 0 & 4 \
\hline 1 & 15 & 4 \
\hline 2 & 29 & 4 \
\hline 3 & 42 & 4 \
\hline 4 & 54 & 4 \
\hline 5 & 65 & 4 \
\hline 6 & 75 & 4 \
\hline 7 & 84 & 4 \
\hline 8 & 92 & 4 \
\hline 9 & 99 & 4 \
\hline 10 & 105 & 4 \
\hline
\end{array}$$
-Refer to Table 11.4 for the data for a perfectly competitive firm.The first column shows the number of workers employed in production,the second column shows the total product of the firm,and the third column shows its product price.From the table,it can be said that the marginal revenue product curve will slope downward.

Question

Table 11.4
 $$\begin{array} { | c | c | c | } 
\hline \text { Number of Workers } & \begin{array} { c } 
\text { Total } \
\text { Froduct }
\end{array} & \begin{array} { c } 
\text { Product } \
\text { Price } ( \$ )
\end{array} \
\hline 0 & 0 & 4 \
\hline 1 & 15 & 4 \
\hline 2 & 29 & 4 \
\hline 3 & 42 & 4 \
\hline 4 & 54 & 4 \
\hline 5 & 65 & 4 \
\hline 6 & 75 & 4 \
\hline 7 & 84 & 4 \
\hline 8 & 92 & 4 \
\hline 9 & 99 & 4 \
\hline 10 & 105 & 4 \
\hline
\end{array}$$
-Refer to Table 11.4 for the data for a perfectly competitive firm.The first column shows the number of workers employed in production,the second column shows the total product of the firm,and the third column shows its product price.From the table,it can be said that the marginal revenue product curve will slope downward.

Quizplus · Accepted Answer

The marginal revenue product (MRP) curve represents the additional revenue earned by the firm when it hires one more unit of labor. Since the total product curve in the table slopes upward at a decreasing rate, the marginal product of labor (MPL) will first increase and then decrease as more workers are hired. This means that the MRP curve will also slope downward because the additional revenue earned by hiring an additional worker will eventually decrease due to diminishing MPL. Therefore, the statement is true.

Table 114 -Refer to Table 11