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AP® Microeconomics

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Factor Markets: Marginal Revenue Product Curve

APMICR-ESLSXH

Which of the following explain(s) why the MRP curve is downwards sloping for a firm that sells its products in an imperfectly competitive product market?

A

Marginal product begins to declines as more workers are hired.

B

Marginal product increases as more workers are hired.

C

The firm has to lower its price in order to sell additional units.

D

Both A and C

E

None of the above