A Firm's Demand for Labor Is Known as a "Derived

question 1

Multiple Choice

A firm's demand for labor is known as a "derived demand" because

• A)the firm gains utility from hiring more labor.
• B)the amount of labor hired depends upon how much output the firm can sell.
• C)the wage rate paid to workers is derived from the market for labor.
• D)it is derived from the demand for capital.

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Definitions:

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The exchange of goods and services across international borders or territories, influencing a country's economy.

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The formal confirmation or validation of an agreement, treaty, or constitution.

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