View the step-by-step solution to:

Why does the marginal revenue product(MRP) curve slope downward for a perfectly competitive firm?

Why does the marginal revenue product(MRP) curve slope downward for a perfectly competitive firm?
a. because MRP=MR x MPP. After some point, as more of a factor is employes, the lower its MFC is; thus MRP declines
b. Because MRP = MFC x MPP. After some point, as more of a factoc is employed, the lower its MFC is; thus MRP declines.
c. Because MRP = MR x MPP. After some point, MR declines for a product price taker; thus, MRP declines.
d. Because MRP = MFC x MR. After some point, MFC and MR decline; thus, MRP declines.
Sign up to view the entire interaction

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question