Potential income and the labour market - The classical labour market - Labour demand
9 important questions on Potential income and the labour market - The classical labour market - Labour demand
When do firms demand another unit of labour?
What do you read of the partial production function?
Of what is the marginal product of labour schedule the partial derivative?
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What is the relation between real wage and marginal product of labour when it is profitable to employ?
How is profits defined when looking at labour demand?
What variable - which is not necessarily fixed - is fixed in a profit curve?
What do iso-profit lines combine?
What iso-profit line is associated with more profit when there are two in a diagram?
Why do iso-profit lines always intersect with the labour demand curve at their peak?
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