A Firm's Demand Curve for Labor Slopes Downwards Because

question 1

Multiple Choice

A firm's demand curve for labor slopes downwards because

• A)of the law of diminishing marginal returns.
• B)firms supply less labor as the wage rate rises.
• C)workers supply less labor services as the wage rate falls.
• D)of rising marginal product.

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Definitions:

Capacity Planning

The process of determining the production capacity needed by an organization to meet changing demands for its products.

Capacity Increment

The addition or increase in a system's or facility's ability to produce goods or services.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Drum

In production and project management, often refers to the constraint or bottleneck resource that dictates the pace at which a process can run.