The Labor Demand Curve of a Purely Competitive Seller

question 112

Multiple Choice

The labor demand curve of a purely competitive seller

• A) slopes downward because the elasticity of demand is always less than unity.
• B) slopes downward because of diminishing marginal productivity.
• C) is perfectly elastic at the going wage rate.
• D) slopes downward because of diminishing marginal utility.

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Definitions:

Trypsin

Protein-digesting enzyme secreted by the pancreas.

Salivary Amylase

In humans, enzyme in saliva that digests starch to maltose.

Secretin

A hormone produced by the small intestine that stimulates the pancreas to release bicarbonate-rich fluids, aiding digestion.

Chyme

Thick, semiliquid food material that passes from the stomach to the small intestine.