The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-In Figure 18.1, the curve B indicates:

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-In Figure 18.1, the curve B indicates:

Quizplus · Accepted Answer

Curve B represents the marginal revenue product (MRP) curve for land in an imperfectly competitive resource market. The MRP curve shows the additional revenue a firm earns by hiring one more unit of the resource (in this case land) while holding all other resource inputs constant. The MRP curve is downward sloping because as more land is employed, the marginal product of land decreases, which in turn reduces the marginal revenue product of land. Therefore, the best choice is B, which is the marginal revenue product curve for land.

The Figure Given Below Represents an Imperfectly Competitive Resource Market