The Diagram Below Shows the MRP Curve for a Firm

question 65

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 13-1
-Refer to Figure 13-1.Suppose this firm has the marginal revenue product curve MRP1.At a wage rate of $12,the profit-maximizing firm will hire ________ units of labour.

• A)100
• B)120
• C)140
• D)160
• E)180

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Definitions:

Perceptual Skills

Abilities related to the interpretation of sensory input, such as recognizing patterns, objects, and spatial relationships.

Dishabituation

A renewal of response in a habituated organism following the presentation of a novel stimulus.

Disinhibition

A reduction in restraint or the inhibition of impulses, often leading to impulsive or risky behavior.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented alongside an unconditioned stimulus that elicits an automatic response.