The marginal product of the labor curve represents:
A) the demand for wages
B) the supply of labor
C) the demand for labor
D) the demand for capital
E) the supply of wages

Question

Quizplus · Accepted Answer

The marginal product of labor curve represents the additional output produced by adding one more unit of labor. Therefore, it represents the demand for labor as firms will hire additional workers as long as the marginal product of labor is greater than the wage rate.

The Marginal Product of the Labor Curve Represents