The Marginal Revenue Product Curve for a Monopolist Would Be

question 122

Multiple Choice

The marginal revenue product curve for a monopolist would be its marginal product curve because .

• A) the same as; the MRP curve always has the same shape as the MP curve.
• B) steeper than; its product's price increases as output increases.
• C) steeper than; its MR decreases as output increases.
• D) flatter than; it must pay a higher wage to labour.
• E) flatter than; its product's price decreases as output increases.

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Definitions:

Opportunity Cost

The benefit that is missed or given up when choosing one alternative over another.

Hour

A unit of time equal to 60 minutes.

Opportunity Cost

Skipping over the possibility of gain from multiple options by deciding on a single one.

Opportunity Cost

The cost of choosing one option over alternative uses of resources or opportunities.