The MRP curve for labor
A)intersects the firm's labor demand curve from above.
B)is the firm's labor demand curve.
C)lies below the firm's labor demand curve.
D)lies above the firm's labor demand curve.

Question

Quizplus · Accepted Answer

The MRP (Marginal Revenue Product) curve for labor represents the additional revenue a firm earns from hiring one more unit of labor, and it is equivalent to the firm's demand curve for labor. This is because firms decide on the quantity of labor to hire based on the additional revenue generated by that labor.

The MRP Curve for Labor