The Labor Demand Curve of a Purely Competitive Seller

question 4

Multiple Choice

The labor demand curve of a purely competitive seller

• A)slopes downward because the firm must lower price to sell more output.
• B)slopes downward because labor productivity increases as successive workers are hired.
• C)is perfectly elastic because the firm is hiring an insignificant portion of the total labor supply.
• D)slopes downward because the marginal product of successive workers declines.

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Definitions:

Product Market

A commercial space where end products or services are presented to individuals, companies, and government entities.

Labor Market

The supply of available workers in relation to available employment.

Union Effective

The degree to which a labor union is able to improve working conditions, wages, and benefits for its members.