The Student Room Group

Can someone check my MRPL explanation?

Link: http://prntscr.com/263vnli

I feel like I made an error somewhere but I'm not sure where
(edited 2 years ago)
Original post by bluesun86
Link: http://prntscr.com/263vnli

I feel like I made an error somewhere but I'm not sure where

You said the ‘price of Labour decreases with each additional worker demanded’ did you mean the proportion of their costs instead? Or are you referring to an imperfectly competitive market? - because if you are talking about a perfectly competitive market, the price of Labour, including additional units of Labour is the same hence why W also = MR.

I think it might just be an accident with the wrong word/not explained because you clearly know the W=MR because you put that in your diagram

Hope this helped

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