中级宏观经济学课件第3章-1.pptVIP

* * This is Figure 3-11 from page 65 of the text. See accompanying discussion. * * * * It’s easy to see that the MPL curve is the firm’s L demand curve. Let L* be the value of L such that MPL = W/P. Suppose L L*. Then, benefit of hiring one more worker (MPL) exceeds cost (W/P), so firm can increase profits by hiring one more worker. Instead, suppose L L*. Then, the benefit of the last worker hired (MPL) is less than the cost (W/P), so firm should reduce labor to increase its profits. When L = L*, then firm cannot increase its profits either by raising or lowering L. Hence, f