Which of the following will not cause the marginal revenue product of labor curve for a firm to shift?

Question

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The marginal revenue product of labor (MRP) is the additional revenue that a firm earns from hiring an additional unit of labor. An increase in the productivity of workers (A) or an increase in demand for the product (B) will shift the MRP curve to the right, indicating that the firm will be willing to pay a higher wage to attract more workers. A decrease in the price of the product (C) will lead to lower revenue for the firm, and therefore a lower MRP curve. However, an increase in the wage rate (D) does not shift the MRP curve, but rather moves the firm to a different point on the same curve. At a higher wage rate, the firm will hire fewer units of labor since each unit of labor becomes more expensive. Therefore, the shape of the MRP curve remains the same, but the quantity of labor demanded may decrease.

Which of the Following Will Not Cause the Marginal Revenue