The demand curve for labor is the same as the firm's
A) marginal revenue curve.
B) marginal cost curve.
C) value of marginal product of labor curve.
D) wage rate curve.
E) supply of output curve.

Question

Quizplus · Accepted Answer

The demand curve for labor represents the employer's willingness to pay for each unit of labor, which is equal to the value of the marginal product of labor (VMPL) curve. The demand for labor is derived from the marginal product curve and the price of output. It shows how many workers the firm will hire at different wage rates. Therefore, the correct option is (C) value of marginal product of labor curve.

The Demand Curve for Labor Is the Same as the Firm's