For a Competitive,profit-Maximizing Firm,the Demand Curve for Labor Will Shift

question 187

Multiple Choice

For a competitive,profit-maximizing firm,the demand curve for labor will shift in response to a change in the

• A)wage rate.
• B)quantity of labor demanded.
• C)price of the product that the firm sells.
• D)All of the above are correct.

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Definitions:

Resource

An economic or productive factor required to accomplish an activity, often considered in terms of time, labor, capital, and materials.

Complementary Resource

refers to inputs or goods that are used together with another resource or good to produce a product or service.

Marginal Revenue Product

This is the additional revenue generated from employing one more unit of a factor of production, such as labor.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.