The Diagram Below Shows the MRP Curve for a Firm

question 70

Multiple Choice

The diagram below shows the MRP curve for a firm producing copper plumbing pipe.The factor of production being considered here is hours of labour.
FIGURE 13- 2
-Refer to Figure 13- 2.Suppose this firm is facing MRP1,a wage rate of $12 per hour and is employing 150 units of labour.At this level of employment,

• A)the last unit of labour contributes as much to the firm's costs as to the firm's revenues and so the firm should not change its use of labour.
• B)the last unit of labour is adding less to the firm's cost than it is adding to the firm's revenue,so it should increase the use of labour.
• C)the firm has shifted the MRP curve to MRP2.
• D)the last unit of labour is adding more to the firm's cost than it is adding to the firm's revenue,so it should reduce the use of labour.
• E)the firm has shifted the MRP curve to MRP3.

---

Definitions:

Adaptive Leadership

A leadership approach that emphasizes the importance of leaders being flexible and responsive to changing environments and challenges.

Adaptive Work

Work that requires a change in values, beliefs, or behaviors to effectively address complex challenges.

Identify And Solve

The process of recognizing problems and devising strategies or solutions to address them effectively.

Adaptive Behaviors

Actions or skills developed in response to changing circumstances or environments, facilitating better adjustment and functioning.