The Diagram Below Shows the MRP Curve for a Firm

question 88

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 is facing MRP1,a wage rate of $16 per hour and is employing 100 units of labour.At this level of employment,

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

---

Definitions:

Connection

The feeling of being emotionally linked or bonded with someone, often seen as foundational to therapeutic relationships.

Stereotypical Roles

Traditional or clichéd societal expectations and behaviors assigned to individuals based on their gender, race, or social status.

Cultural Appropriation

The adoption or use of elements of one culture by members of another culture, often without understanding or respecting the original cultural context.

Cultural Normalization

The process by which certain behaviors, values, or norms become integrated and accepted within a society or culture as standard or typical.