If labor is the only variable input,a firm's labor demand curve is

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The labor demand curve for a firm is the downward-sloping portion of its marginal revenue product of labor curve. This is because as the firm hires more and more workers, the marginal product of labor (the additional output that each additional worker produces) will eventually decrease due to diminishing returns, which causes the marginal revenue product of labor to decrease. As a result, the firm will be willing to hire fewer workers at a higher wage rate and more workers at a lower wage rate, leading to a downward-sloping labor demand curve.

If Labor Is the Only Variable Input,a Firm's Labor Demand