A firm's demand for labour curve is also called its
A) marginal revenue product of labour curve.
B) marginal factor cost of labour curve.
C) marginal valuation curve.
D) marginal benefit of labour curve.

Question

Quizplus · Accepted Answer

The demand for labour curve shows the firm's marginal revenue product of labour, which is the additional revenue generated by hiring one more unit of labour. Therefore, choice A is the correct answer. Choice B is incorrect because marginal factor cost refers to the additional cost of hiring one more unit of labour, which is represented by the firm's supply of labour curve. Choices C and D are incorrect because they do not accurately describe the firm's demand for labour curve.

A Firm's Demand for Labour Curve Is Also Called Its