Figure: the Value of the Marginal Product Curve

question 181

Multiple Choice

Figure: The Value of the Marginal Product Curve
(Figure: The Value of the Marginal Product Curve) In the figure The Value of the Marginal Product Curve, if the market wage rate increases:

• A)the VMPL curve will shift to the right.
• B)the profit-maximizing quantity of labor will increase.
• C)the VMPL curve will shift to the left.
• D)the profit-maximizing quantity of labor will decrease.

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Definitions:

Work in Process

Inventory that includes goods that are in the production process but are not yet completed.

Finished Goods

These are completed products that are ready for sale but have not yet been sold to customers.

Cost of Goods Sold

Costs directly incurred in the manufacture of goods a company sells.