How is the demand for labor derived from the value of marginal product of labor?
What will be an ideal response?
The demand for labor is determined by the value of marginal product of labor. To maximize its profit a firm hires the number of workers that sets the wage rate equal to the value of marginal product of labor. When the wage rate changes, the firm changes the quantity of labor it demands so that the (new) wage rate equals the value of marginal product. So when the wage rate changes, the firm moves along its value of marginal product of labor curve to determine the quantity of labor demanded, thereby making its value of marginal product of labor curve its demand for labor curve.
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The Clayton Act:
a. was passed in 1890. b. created the Federal Trade Commission. c. abolished antitrust policy in this country. d. attempted to give explicit content to what formed an antitrust violation. e. made mergers between corporations illegal.
GDP is based on the market value of goods and services produced in an economy and not on the value of only final goods and services
a. True b. False Indicate whether the statement is true or false