The firm's value of the marginal product of labour curve:
A) is the firm's demand curve for labour.
B) is the industry's demand curve for labour.
C) is the same as the marginal cost curve for labour.
D) slopes upward.

Question

Quizplus · Accepted Answer

The firm's value of the marginal product of labour (VMPL) curve shows how much additional output the firm will get from hiring one more unit of labour. This means that the VMPL curve represents the additional revenue that the firm will earn from that additional unit of labour. Therefore, the VMPL curve is equivalent to the firm's demand curve for labour.

The Firm's Value of the Marginal Product of Labour Curve