The demand curve for labor is also
A)the demand curve for the output produced with labor since the demand for labor is a derived demand.
B)the marginal product of labor curve.
C)the marginal revenue product of labor curve.
D)the supply curve for the output labor is used to produce.

Question

Quizplus · Accepted Answer

The demand curve for labor is the marginal revenue product of labor curve, which shows how much additional revenue each additional unit of labor will produce for the firm. This is because the demand for labor is a derived demand, meaning that it comes from the demand for the output produced with labor. The marginal product of labor curve shows the additional output produced by each additional unit of labor, but it does not take into account the price at which the output can be sold, and therefore does not reflect the demand for labor. Similarly, the supply curve for the output labor is used to produce does not reflect the demand for labor, as it only shows how much output suppliers are willing and able to produce at different prices.

The Demand Curve for Labor Is Also