An Increase in a Perfectly Competitive Firm's Demand for Labour

question 152

Multiple Choice

An increase in a perfectly competitive firm's demand for labour could be caused by

• A) a decrease in the market wage rate.
• B) an increase in the market demand for the firm's product.
• C) a decrease in the marginal product of workers.
• D) an increase in the quantity of labour supplied.

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Definitions:

Asset on Credit

An asset acquired by a company through borrowing or on terms that allow for deferred payment.

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit, typically collected within a short time period.

Individual Asset

A single item of property, whether tangible or intangible, that is owned and has value to the entity holding it.

Liability Decreases

A reduction in the amounts owed by an entity to external parties or creditors.