A Cournot duopoly firm's labor demand curve
A) is given by P[1 + 1/(2e)] * MPL.
B) is equal to P(1 + 1/e) * MPL.
C) is given by P(1 + 1/e) * MR.
D) is equal to P(e + 1/e) * MPL.

Question

Quizplus · Accepted Answer

In a Cournot duopoly, the labor demand curve is derived from the marginal revenue product of labor, which is P[1 + 1/(2e)] * MPL, where P is the price, e is the elasticity of demand, and MPL is the marginal product of labor.

A Cournot Duopoly Firm's Labor Demand Curve