The individual producer's labour demand curve is the:
A) marginal product of labour curve.
B) value of the average product of labour curve.
C) average product curve.
D) value of the marginal product of labour curve.

Question

Quizplus · Accepted Answer

The labour demand curve of an individual producer is the value of the marginal product of labour curve. This is because the producer will hire an additional unit of labour only if the value of the output it produces is greater than or equal to the additional cost of hiring that labour unit. In other words, the producer will hire labour up to the point where the marginal product of labour equals the wage rate, which is the value of the marginal product of labour curve.

The Individual Producer's Labour Demand Curve Is The