The marginal revenue product curve for a monopolist would be its marginal product curve because .
A)flatter than; it must pay a higher wage to labour
B)steeper than; its MR decreases as output increases
C)steeper than; its product's price increases as output increases
D)the same as; the MRP curve always has the same shape as the MP curve
E)flatter than; its product's price decreases as output increases

Question

Quizplus · Accepted Answer

For a monopolist, marginal revenue decreases as output increases due to the downward-sloping demand curve, making the marginal revenue product curve steeper than the marginal product curve.

The Marginal Revenue Product Curve for a Monopolist Would Be