Exhibit 13-2
-A competitive firm's derived demand curve is its

Question

Exhibit 13-2 
-A competitive firm's derived demand curve is its

Quizplus · Accepted Answer

A competitive firm's derived demand curve is its marginal revenue product curve, which shows how much revenue the firm can generate by hiring additional units of labor at different wage rates. The marginal revenue product curve is derived from the firm's production function and the market price of the output it produces. It is the value of the additional output that each additional unit of labor can produce, multiplied by the price of the output. The other options are not correct because the wage curve is not a demand curve, the marginal product curve shows the relationship between output and input (not input demand), and the output demand curve divided by the wage is not a commonly used concept in economics.

Exhibit 13-2 -A Competitive Firm's Derived Demand Curve Is Its