What is the shape of a firm's marginal revenue product curve? Why does it look this way?
What will be an ideal response?
The firm's marginal revenue product curve is downward sloping like the marginal product curve. The shape occurs as a result of diminishing returns in the short run.
Economics
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Which of the following describes a firm?
a. Purchases labor hours from workers b. Borrows capital from investors c. Combines labor and capital to create production, moving them from their low value use to high value use d. All of the above
Economics
Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 If P = 6 the profit-maximizing level of profits is
a. 10 b. 20 c. 30 d. ?10
Economics