For competitive firms,the curve that represents the value of marginal product of labour is the same as the demand-for-labour curve.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and the value of marginal product of labour (VMPL) is equal to the wage rate. The demand for labour curve is the downward-sloping curve that represents the quantity of labour demanded at each wage rate. In a perfectly competitive market, the VMPL curve is the same as the demand-for-labour curve. So, the statement is true.

For Competitive Firms,the Curve That Represents the Value of Marginal