The individual producer's labor demand curve is the:
A)marginal product of labor curve.
B)value of the average product of labor curve.
C)average product curve.
D)value of the marginal product of labor curve.

Question

Quizplus · Accepted Answer

The individual producer's labor demand curve represents the value of the marginal product of labor (MPL) at different wage rates. The MPL is the additional output produced by adding one more unit of labor, and its value indicates how much that additional output contributes to the producer's total revenue. Therefore, the individual producer will hire labor as long as the wage rate is less than or equal to the MPL. Hence, the labor demand curve is also the Marginal Benefit Curve.

The Individual Producer's Labor Demand Curve Is The