The labor demand curve for a professional athlete is based upon:
A) The marginal product of what the athlete produces.
B) The marginal revenue associated with the output the athlete produces.
C) Both "a" and "b'
D) The athlete's substitutability between labor and leisure. .

Question

Quizplus · Accepted Answer

The labor demand curve for a professional athlete is based on both the marginal product of what the athlete produces and the marginal revenue associated with the output the athlete produces. The marginal product refers to how much additional output is generated by adding one more unit of labor (in this case, the athlete). The marginal revenue is the additional revenue generated by selling one more unit of output. Therefore, a combination of both factors determines the labor demand curve for a professional athlete.

The Labor Demand Curve for a Professional Athlete Is Based