The Diagram Below Shows the MRP Curve for a Firm

question 18

Multiple Choice

The diagram below shows the MRP curve for a firm producing high school math textbooks. 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 MRP3 is

• A) an increase in the wage rate.
• B) an increase in the marginal product of labour.
• C) an increase in demand for the firm's output, math textbooks.
• D) a decrease in the market price of math textbooks.
• E) a decrease in the supply of labour.

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Definitions:

Avoidance Learning

A type of learning whereby an individual learns a behavior to avoid an unpleasant or harmful stimulus.

Extinction

The process through which a previously learned behavior diminishes in frequency or intensity when the reinforcement is no longer presented.

Omission Training

A schedule of reinforcement in which the absence of response leads to reinforcement.

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The act of illegally entering a bank with the intent to steal money or valuable securities.