Paper Pushers Inc

question 98

Multiple Choice

Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table below. If the price of each page increases, then the demand for workers will

• A)remain the same because changes in the output market will not affect the demand for labor.
• B)increase because the workers will be motivated to produce more.
• C)increase because the value of the marginal product of labor will increase.
• D)decrease because at a higher sales price the firm will not have to produce as much output.

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