| Sumario: | This article indicates a method of deriving a demand curve of an individual firm for a factor of production from marginal productivity analysis, on the assumption that the prices of the other factors of production are given, rather than their amounts. While the latter assumption permits the demand curve to be derived immediately from the total product curve of the variable factor, such a method is of limited usefulness. In any but the shortest-run period, the entrepreneur is generally in a position to vary his use. In the analysis featured in this article, it will be assumed for purposes of simplification that there is only one other factor (B), whose price is given for the firm. Conditions of demand for the firm's output are also assumed as given; the total product curves that will be used show the value of the total product to the firm. The slopes of the curves indicate marginal value (at revenue) productivity; hence the analysis is applicable to imperfect as well as to perfect competition in commodity markets.
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