The mrp curve for labor:
a. lies above the firm's labor demand curve.
b. intersects the firm's labor demand curve from above.
c. lies below the firm's labor demand curve.
d. is the firm's labor demand curve.

D. is the firm's labor demand curve

Explanation:

MRP which is the marginal revenue product, that is the market value of one additional unit of output

MRP = MP * MR. That is Marginal Product which is increase in output due to additional labor used multiplied by Marginal revenue which is addition to sales revenue from increase in output.

The theory states that workers will be hired up to the point when the marginal revenue product is equal to the wage rate. If the marginal revenue brought by the worker is less than the wage rate, then employing that laborer would cause a decrease in profit.

This is justified if it is a profit oriented firm and would employ labor only up to the point that marginal labor costs equal the marginal revenue generated for the firm.

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