The individual producers labor demand curve is the a average

The individual producer\'s labor demand curve is the:

a. average product curve.

b. marginal product of labor curve.

c. value of the average product of labor curve.

d. value of the marginal product (or marginal product revenue) of labor curve.

Solution

Answer = d.

When a producer knows the level of Demand for its output, it determines how much Labour to demand , by looking at the marginal revenue product of labour, which is the additional revenue the producer earns by employing 1 mute unit of labour.