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Topic14 - Labour demand 14 Labour markets and income...

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1 14. Labour markets and income inequality Labour demand The demand for a resource (labour) is derived from the demand for the product the resource (labour) produces, called ‘derived demand’. The demand for an additional unit of labour will occur as long as the marginal revenue generated by each additional unit exceeds the marginal cost. Labour supply The market supply of a resource (labour) sums all the individual supply curves for the resource. A resource (labour) owner will supply additi