Asked by Nikki Amadi on Mar 10, 2024
Verified
Suppose the demand for strawberries rises sharply, resulting in an increased price for strawberries. As it relates to strawberry pickers, we could expect the
A) MRP curve to shift to the right.
B) MRP curve to shift to the left.
C) MRC curve to shift downward.
D) MP curve to shift downward.
A) MRP curve to shift to the right.
B) MRP curve to shift to the left.
C) MRC curve to shift downward.
D) MP curve to shift downward.
MRP Curve
The marginal revenue product curve, which shows the additional revenue generated by one additional unit of an input.
- Understand the factors influencing the demand and supply of labor and other resources.
- Interpret the marginal revenue product (MRP) and its role in resource employment decisions.
Verified Answer
MA
Maitha Alnuaime
Mar 10, 2024
Final Answer :
A
Explanation :
The MRP (Marginal Revenue Product) curve shifts to the right because the increased demand for strawberries leads to higher prices, which in turn increases the revenue generated from selling an additional unit of strawberries picked. This makes the value of the marginal product of labor (strawberry pickers) higher, shifting the MRP curve to the right.
Learning Objectives
- Understand the factors influencing the demand and supply of labor and other resources.
- Interpret the marginal revenue product (MRP) and its role in resource employment decisions.