Asked by Franco Sagula on Jun 22, 2024
Verified
The marginal revenue product curve for labor is the demand curve for labor.
Demand Curve
A visual map indicating how consumer demand for a product varies with changes in its price.
Marginal Revenue Product Curve
A graphical representation showing how the extra revenue generated from employing one more unit of a resource changes as more of the resource is employed.
Labor
The work performed by humans which is often measured in terms of hours or productivity and is a fundamental factor of production.
- Acquire an understanding of the basis of derived demand for inputs.
- Gain insight into the relationship between market wage rates and labor demand.
Verified Answer
LD
Lavonne Dozie- NnamahJun 25, 2024
Final Answer :
True
Explanation :
The marginal revenue product curve for labor represents the additional revenue a firm earns from hiring one more unit of labor, and it is indeed the demand curve for labor because it shows the quantity of labor demanded at different wage rates.
Learning Objectives
- Acquire an understanding of the basis of derived demand for inputs.
- Gain insight into the relationship between market wage rates and labor demand.