For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve.

Question

Quizplus · Accepted Answer

The value of the marginal product of labor curve represents how much additional revenue a firm earns from hiring an additional worker, and it is downward sloping due to diminishing returns. This curve is used by competitive firms to determine how many workers to hire based on the wage rate, making it effectively the same as the demand for labor curve.

For Competitive Firms, the Curve That Represents the Value of Marginal