Chapter 11 – Introduction
This chapter is remixed from “Demand for Labor”, Lumen Learning and is licensed under CC0 No Rights Reserved
The Demand for Resources
In this lesson, you will learn how to:
- explain how the marginal revenue productivity of a firm resource relates to a firm’s demand for that resource
- list the factors that increase or decrease resource demand.
- explain how marginal revenue product and marginal resource cost can be used to find the profit-maximizing quantity of a resource (such as labor) purchased by a firm
- calculate the profit-maximizing quantity of a resource (such as labor) purchased by a firm
- determine how a competitive firm selects its optimal combination of resources