The Shape of the Marginal Revenue Product Curve for a Perfectly

question 53

Multiple Choice

The shape of the marginal revenue product curve for a perfectly competitive firm would be its marginal product curve because _ .

• A)steeper than; its product's price increases as output increases
• B)flatter than; its product's price decreases as output increases
• C)flatter than; it must pay a higher wage to the variable factor as output increases
• D)steeper than; MR decreases as output increases
• E)the same as; MR is constant as output increases

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