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:

Individual Bank

An individual bank refers to a financial institution dealing with deposits and loans of consumers and businesses, distinguishing itself by offering personalized banking products and services.

Depression

An intense and extended period of economic recession marked by a substantial drop in Gross Domestic Product (GDP), elevated rates of joblessness, and a decrease in the general price level of goods and services.

Aggregate Demand

The aggregate requirement for all products and services within an economy, measured at a specific overall price level and during a certain time frame.

U.S. Government Securities

Financial instruments issued by the U.S. Department of the Treasury or other federal government agencies to finance federal spending, including Treasury bonds, notes, and bills.