Asked by La Vida de una Guerrera on May 03, 2024
Verified
The MRP curve for labor:
A) intersects the firm's labor demand curve from above.
B) is the firm's labor demand curve.
C) lies below the firm's labor demand curve.
D) lies above the firm's labor demand curve.
MRP Curve
The Marginal Revenue Product curve, which shows the added revenue generated by increasing the employment of an additional unit of a resource, holding other factors constant.
Labor Demand Curve
Represents the relationship between the quantity of labor that employers are willing to hire and the wage rate, typically sloping downward from left to right.
- Evaluate how MRP influences the staffing decisions within corporations.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
B
Explanation :
The MRP (Marginal Revenue Product) curve for labor represents the additional revenue a firm earns from hiring one more unit of labor, and it is equivalent to the firm's demand curve for labor. This is because firms decide on the quantity of labor to hire based on the additional revenue generated by that labor.
Learning Objectives
- Evaluate how MRP influences the staffing decisions within corporations.