Suppose the marginal value product curve of labor is drawn with wage on the vertical axis and quantity of labor on the horizontal axis.With an increase in the employment of other inputs,the marginal value product curve of labor will _____.
A)shift upward
B)shift downward
C)not change
D)become horizontal

Question

Quizplus · Accepted Answer

When other inputs are increased, the productivity of labor typically increases because labor can use these inputs to produce more output. This increase in productivity raises the value of the marginal product of labor, causing the marginal value product curve to shift upward.

Suppose the Marginal Value Product Curve of Labor Is Drawn