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WAEC Economics 2008 Question 26

Question 26

Labour Market

The employers' demand curve for labour is represented by the

  1. A.marginal product curve of labour
  2. B.total product curve of labour
  3. C.average product curve of labour
  4. D.total cost curve of labour.
Show the answer and explanation

Answer: A (marginal product curve of labour)

Explanation

Employers hire labour according to the extra output each worker adds, so the demand curve is the marginal (revenue) product curve.