The firm’s demand curve for labor is determined by the incremental revenue from hiring an additional unit of labor known as the marginal revenue product of labor: MRPL = (MPL)(MR), the additional output (“product”) that the last worker produced, times the additional revenue earned by selling that output. In a competitive industry, the marginal revenue curve is perfectly elastic and equal to price. For a monopolist, marginal revenue is downward sloping. As more labor is hired and more output is produced, the monopolist will charge a lower price and marginal revenue will diminish. All else the same, marginal revenue product will be smaller for the monopolist. This implies that the marginal revenue product for the monopolist is more inelastic than for the competitive firm.