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

question 3

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.

---

Definitions:

Induction

The process of reasoning that infers general principles from specific observations or instances.

Outsider's Viewpoint

A perspective on social groups or situations from someone who is not a member of the group, potentially offering unbiased observations but lacking insider understanding.

Knowledge Acquisition

The process of learning, understanding, and making sense of information, which can be through education, experience, or observation.

Critical Attitude

An approach characterized by active questioning and skepticism towards texts, policies, and normative practices, aiming to uncover underlying assumptions.