The Diagram Below Shows the MRP Curve for a Firm

question 22

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 profit-maximizing firm is facing MRP1 and a wage rate of $12 per hour.Now suppose there is,simultaneously,an increase in demand for copper plumbing pipe (such that MRP shifts to MRP2) ,and an increase in the wage rate to $16 per hour.The firm should

• A)employ 20 more units of labour.
• B)employ 40 more units of labour.
• C)employ the same number of units of labour.
• D)employ 40 fewer units of labour
• E)employ 20 fewer units of labour.

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Definitions:

Hormones

Chemical messengers produced by the endocrine glands that travel through the bloodstream to target organs or tissues, influencing various bodily functions.

Humoral Immunity

One of the three general categories of immune response, in which invading antigens are presented by macrophages to B-lymphocytes. (“B” stands for bursa, an organ in which such cells are produced in birds. B-lymphocytes derive from the liver and bone marrow in humans.) This causes the B-cells to reproduce—a process reinforced by the lymphokine secretion from the helper T-cells. Some of the activated B-cells remain as memory B-cells. Others go on to be plasma cells, secreting antibodies called immunoglobulins that neutralize antigens in a number of different ways, such as clumping, presenting the antigen to phagocytic cells, or rupturing the antigen.

Macrophages

A type of white blood cell that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells in a process called phagocytosis.

Memory B-Cells

A type of white blood cell involved in the immune response, capable of remembering past infections and pathogens to produce a quicker response upon re-exposure.