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15 cards from this deck
Demand arising from demand for goods/services labour produces
Output per unit of input (per worker or per hour worked)
Average cost of labour per unit of output
Responsiveness of quantity of labour demanded to wage rate changes
Not for its own sake, but for goods/services it produces
Inverse relationship
Can complement labour or substitute it
Increases labour demand
Decreases labour demand
Easier substitution makes demand more elastic
Short run: inelastic; Long run: more elastic
Total OutputWorkers or Hours Worked\frac{\text{Total Output}}{\text{Workers or Hours Worked}}Workers or Hours WorkedTotal Output
Total Labour CostsTotal Output\frac{\text{Total Labour Costs}}{\text{Total Output}}Total OutputTotal Labour Costs
MRP=MPL×MRMRP = MPL \times MRMRP=MPL×MR
Hire labour where MRP equals wage rate
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