For a firm that is not in perfect competition, why does the MRP slope downward? (mark all that apply) Because it is assumed that worker productivity declines due to on-the-job exhaustion Because as firms hire more workers, they face the law of diminishing marginal returns Because firms have to decrease their prices to sell more, which decreases MRP Because firms can charge higher than market prices for their products The MRP is actually horizontal, not downward sloping
For a firm that is not in perfect competition, why does the MRP slope downward? (mark all that apply) Because it is assumed that worker productivity declines due to on-the-job exhaustion Because as firms hire more workers, they face the law of diminishing marginal returns Because firms have to decrease their prices to sell more, which decreases MRP Because firms can charge higher than market prices for their products The MRP is actually horizontal, not downward sloping
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...
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I got this question wrong because it was incomplete. Another option is correct, which one is it? For a firm that is not in perfect competition , why does the MRP slope downward? (mark all that apply) Because it is assumed that worker productivity declines due to on-the-job exhaustion Because as firms hire more workers, they face the law of diminishing marginal returns Because firms have to decrease their prices to sell more, which decreases MRP Because firms can charge higher than market prices for their products The MRP is actually horizontal, not downward sloping
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