Why is the short-run demand curve for labor downward sloping

Reference no: EM131923214

Problem

1. Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical to the one that requires a profit-maximizing firm to produce the level of output where the price of the output equals the marginal cost of production.

2. Why is the short-run demand curve for labor downward sloping?

3. What mix of inputs should be used to produce a given level of output?

Reference no: EM131923214

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