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

Question

Quizplus · Accepted Answer

The demand curve for labour represents the marginal revenue product of labour, which shows the additional revenue that a firm can generate by employing one more unit of labour. It is not the same as the marginal product of labour, which shows the additional output that a firm can produce by employing one more unit of labour. The demand for labour is a derived demand since it depends on the demand for the output produced with labour, but it is not the same as the demand curve for the output. Similarly, the supply curve for the output labour is used to produce is not the same as the demand curve for labour.

The Demand Curve for Labour Is Also