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What is the relationship between the VMP curve and the Labor-demand curve for a profit-maximizing firm?

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Final answer:

The VMP curve and the Labor-demand curve for a profit-maximizing firm intersect at the point where the VMP equals the wage rate.

Step-by-step explanation:

In a profit-maximizing firm, the relationship between the VMP (Value of Marginal Product) curve and the Labor-demand curve can be observed graphically. The VMP curve represents the additional revenue generated by each additional unit of labor. On the other hand, the Labor-demand curve represents the firm's willingness to hire labor at different wage rates. The profit-maximizing firm will hire labor up to the point where the VMP equals the wage rate, where the Labor-demand curve intersects with the VMP curve.

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