FIGURE 13.2 The Marginal Revenue Curve Is the Labor Demand Curve
Because the MRPL curve shows the quantity of labor that a firm will hire at any given market wage, it is also the firm’s labor demand curve. At market wage W, Samsung hires l* units of labor. If the market wage were higher, like at W1, Samsung would hire l*1 instead. At a lower wage like W2, Samsung hires a larger quantity, l*2.