The wage rate for widget makers is currently $25 per hour and Ajax hires 20 widget makers. If the wage rate were decreased to $20, what would happen to the marginal revenue product for labor at Ajax?
A) It would remain the same.
B) It would increase since Ajax's demand for labor curve will shift.
C) It would increase since the price of widgets would decrease.
D) It would decrease since Ajax will hire more workers.
Correct Answer:
Verified
Q115: Which of the following will not cause
Q116: The marginal physical product (MPP) is calculated
Q117: An increase in the productivity of labor
Q118: The demand for labor is
A) derived from
Q119: A decrease in the marginal factor cost
Q121: The MRP of labor will shift to
Q122: Q123: The additional output from one more worker Q124: The demands for labor and other input Q125: 
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