The Diagram Below Shows the MRP Curve for a Firm

question 13

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 initially has the marginal revenue product curve MRP1.One reason that the curve could shift to MRP3 is

• A)an increase in demand for the firmʹs output,copper plumbing pipe.
• B)a decrease in the market price of copper plumbing pipe.
• C)a decrease in the supply of labour.
• D)an increase in the wage rate.
• E)an increase in the marginal product of labour.

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