<p>Doesn’t MRPL decrease because the price floor is above the equilibrium wage rate… And that means that the employer has to pay more per laborer now?</p>
<p>No. Because MFC has increased, and MRP >= MFC at optimal level of employment, MRP must be bigger. </p>
<p>Wait, are we assuming they lay off some workers?</p>
<p>@Newdle Sort of; there’s just fewer workers being hired because of the increased wage rate so the MRPL of the <em>last worker hired</em> is higher than it was at the lower wage rate.</p>
<p>idklol i just thought of diminishing marginal returns c:</p>
<p>That’s what I thought too. Since MRP is MPP * Po, at lower levels of output, because of diminishing marginal returns, the marginal physical product of a worker is higher, making MRP higher.</p>
<p>Urgh, that was my gut reaction. I overthought the question and though that assumed that the employer was forced to employ the same amount of labor :/</p>
<p>Who took that make up today. Form A was balls ■■■. That MCQ was ridiculous right? SOMEONE TELL ME THAT IT WASN’T JUST ME WHO THOUGHT IT WAS HARD. 4/5 range but macro regular testing was baby compared to today’s test</p>
<p>WHO ELSE TOOK THE MAKE UP FOR MICRO </p>
<p>■■■■ ■■■■ ■■■■ results come out in 4 days for me</p>
<p>This was by far the worst test for me. I know I got at least a 4, crossing fingers for 5</p>
<p>Got a 5. I’m really happy.</p>