The Demand for Labor Curve Will Be Less Elastic for the Industry

question 51

Multiple Choice

The demand for labor curve will be less elastic for the industry than for the firm because

• A)If all firms hire more labor, increased output will lower product price and therefore the marginal revenue product curve
• B)If all firms hire more labor, the product price will rise
• C)If all firms hire more labor, diminishing returns will not set in as quickly
• D)Industry demand for labor is more elastic than the firm's demand for labor

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Definitions:

Ratify Contracts

To formally confirm or approve an agreement, making it officially valid.

Minor

A person who is below the legal age of majority, which varies by jurisdiction, making them legally incapable of entering into certain contracts and responsibilities.

Intoxicated Person

An individual under the influence of alcohol or drugs to the extent that their mental or physical capabilities are significantly impaired.

Manufacturer's Suggested Retail Price

The amount of money for which the maker of a product recommends that it be sold in retail stores, often used as a standard for pricing, though actual retail prices can vary.