Demand for Labor

Okay, some useful facts about labor demand:

-- marginal product of labor (MPL): how much an additional laborer adds to quantity produced

-- marginal revenue product of labor (MRPL): how much in dollar terms an additional laborer adds to the firm; equals output price times marginal product, therefore changes with either output price changes or marginal product changes; also called the value of the marginal product

-- firms will demand labor up until the point where the MRPL equals the wage