In a discussion about the factors that determine a firm’s demand for labor, Kathleen Jorgensen asserts the following: Statement 1: A firm’s marginal revenue curve is equivalent to its short-run labor demand curve. Statement 2: A decrease in the equilibrium market price of a firm’s product will increase the firm’s demand for labor because the firm will sell more units of the product. Are Jorgensen’s statements correctStatement 1 Statement 2（）①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Incorrect
A. ①
B. ②
C. ③
参考答案：C
解析：
Both statements are incorrect. The marginal revenue product of labor (MRP) curve defines a firm’s short-run labor demand curve. MRP is the gain in total revenue from selling the additional output from employing one more unit of labor input. A decrease in the equilibrium market price of a good reduces the MRP of the labor used to produce that good. The result is a decrease in the firm’s demand for labor.