Which of the following is a firm's demand for labor?
Choose 1 answer:
(A) the firm's marginal factor cost $(M F C)$ curve
(B) the firm's long-run average total cost $(L R A T C)$ curve
(C) the firm's marginal revenue product of labor $\left(M R P_{L}\right)$ curve
(D) the firm's marginal revenue $(M R)$ curve
(E) the firm's marginal revenue product of capital $\left(M R P_{K}\right)$ curve

Question

Accepted Answer

∻Solution∻ ‖ a ⋮ Firm's Demand for Labor: The firm's demand for labor is derived from the value that the additional labor adds to the firm's production. ‖ ‖ b ⋮ Marginal Revenue Product of Labor (MRP_L): This is the additional revenue a firm earns from hiring one more unit of labor, holding all other factors constant. It is calculated as the marginal product of labor (MP_L) times the marginal revenue (MR), which is $MRP_L = MP_L imes MR$. ‖ ‖ c ⋮ Correct Option: The firm's demand for labor is represented by the curve that shows how the marginal revenue product of labor changes with different quantities of labor hired. ‖ ∻Answer∻ ⚹ (C) the firm's marginal revenue product of labor $(MRP_{L})$ curve ⚹ ∻Key Concept∻ ⚹ Firm's Demand for Labor ⚹ ∻Explanation∻ ⚹ The firm's demand for labor is represented by the marginal revenue product of labor curve because it reflects the value of the marginal product that labor contributes to the firm's total revenue. ⚹◊What factors determine a firm's demand for labor in relation to the marginal revenue product of labor?⍭ Generate me a similar question◊

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