Figure 18-1
The figure represents the value of marginal product for a firm that sells its product in a competitive market.

-Refer to Figure 18-1.The value of the marginal-product curve shown in this figure is the same as which of the following

Question

Figure 18-1
The figure represents the value of marginal product for a firm that sells its product in a competitive market.
 
-Refer to Figure 18-1.The value of the marginal-product curve shown in this figure is the same as which of the following

Quizplus · Accepted Answer

The value of marginal product (VMP) shows how much additional revenue each additional unit of labor input generates for the firm. The VMP curve is the same as the labor-demand curve because it shows the firm's willingness to hire more workers at different wage levels. Therefore, the correct answer is B. The labor-supply curve shows the amount of labor offered by workers at different wage levels and is not relevant to the figure. The marginal-revenue curve shows how much revenue each additional unit of output generates, and the total-revenue curve shows the total revenue earned at different levels of output, both of which are not directly related to the VMP curve.

Figure 18-1 the Figure Represents the Value of Marginal Product for a for a Firm