
FIGURE 13.3 Shift in a Firm's Labor Demand
When a firm’s labor demand curve (the
MRPL curve) shifts while the market wage stays constant, the firm’s optimal quantity of labor changes. If Samsung’s
MRPL curve shifts in from
MRPL,high to
MRPL,low (due to a drop in demand for its smartphones, say), its quantity of labor demanded will fall from
l*high to
l*low.