Moderate

If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?

Correct answer: D. marginal product of labour curve

  • A. total variable cost curve
  • B. marginal cost curve
  • C. total product of labour curve
  • D. marginal product of labour curve

Explanation

With a constant output price, marginal revenue product equals the output price multiplied by the marginal product of labour. Multiplying by a constant changes the scale but not the shape, so it follows the marginal product curve.

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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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