Answer: Option (B) is correct.
Explanation:
Correct Option: Value of marginal product curve.
In a case of competitive and profit maximizing firm, the firm demand for labor up to the point where the wages( price of labor) is equal to the value of marginal product of labor. Beyond this point, firm will incurred a loss because the price at which labor is hired is greater than the value of product produce by him.
The value of marginal product of labor is equal to the marginal productivity of labor times the price of the product.
