If the marginal product of labor is constant in labor, then a firm-level labor demand curve is:

Question

Quizplus · Accepted Answer

If the marginal product of labor is constant, the firm-level labor demand curve is flat, indicating that the firm is willing to hire any number of workers at the same wage rate. This occurs when each additional worker contributes the same amount of output to production, and the firm has no incentive to adjust its hiring decision based on changes in the wage rate.

If the Marginal Product of Labor Is Constant in Labor