The Diagram Below Shows the MRP Curve for a Firm

Multiple Choice

The diagram below shows the MRP curve for a firm producing copper plumbing pipe.The factor of production being considered here is hours of labour. FIGURE 13-1
-Refer to Figure 13-1.Suppose this profit-maximizing firm is facing MRP₁ and a wage rate of $12 per hour.Now suppose there is,simultaneously,an increase in demand for copper plumbing pipe (such that MRP shifts to MRP₂) ,and an increase in the wage rate to $16 per hour.The firm should

A) employ 20 more units of labour.
B) employ 40 more units of labour.
C) employ the same number of units of labour.
D) employ 40 fewer units of labour
E) employ 20 fewer units of labour.