What Happens to the Marginal Product (MP) of Labor When

question 128

Multiple Choice

What happens to the marginal product (MP) of labor when the market price of the good produced increases?

• A) Increases proportional to price.
• B) Decreases proportional to price.
• C) Stays the same.
• D) Falls because quantity demanded falls.
• E) Rises because quantity demanded falls.

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