An decrease in the productivity of a factor of production will
A) shift its marginal revenue product curve to the right.
B) shift its marginal revenue product curve to the left.
C) cause a firm to move down the marginal revenue product curve.
D) cause a firm to move up the marginal revenue product curve.

Question

Quizplus · Accepted Answer

A decrease in productivity of a factor of production will lead to a lower marginal product, which in turn will lead to a lower marginal revenue product. This will shift the marginal revenue product curve to the left, indicating that the factor's contribution to production has become less valuable.

An Decrease in the Productivity of a Factor of Production