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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
Transcribed Image Text: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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