The Diagram Below Shows the MRP Curve for a Firm

question 93

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 initially has the marginal revenue product curve MRP1.One reason that the curve could shift to MRP2 is

• A)a decrease in the market price of copper plumbing pipe.
• B)an increase in the supply of labour.
• C)a decrease in demand for the firm's output,copper plumbing pipe.
• D)a decrease in the wage rate.
• E)an improvement in workers' human capital.

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Definitions:

Price Elastic

An indicator of the sensitivity of the demand for a product to alterations in its price.

Increase Overall Revenue

Strategies or actions aimed at boosting the total income generated from sales of goods or services.

Theatre Owners

Individuals or entities that own and manage cinemas or performance venues, responsible for programming and operational aspects.

Price Elastic

Refers to the responsiveness of the demand or supply of a good to changes in its price.