The marginal revenue product curve shifts when

Name: The marginal revenue product curve shifts when
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Question

Quizplus · Accepted Answer

The marginal revenue product curve is based on the price of the product workers are producing. If there is a change in the product price, then the marginal revenue product curve will shift. A change in wages (options A and C) would affect the shape of the curve, but it would not shift it. Option D does not make sense, as wages are a part of the product price and cannot be higher than the price itself.

The Marginal Revenue Product Curve Shifts When