The Demand for Labor Is

question 317

Multiple Choice

The demand for labor is

• A) derived from the satisfaction that hiring the inputs provides the owner or manager of the firm more money.
• B) derived from the demand for the final product being produced.
• C) derived from a utility maximizing process similar to that used to derive the demand curve for goods and services.
• D) totally unrelated to the demand curve for the final product.

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Definitions:

Marginal Product

The additional output that results from using one more unit of a particular input while holding other inputs constant.

Variable Resource

A factor of production whose quantity can be changed easily by a firm in the short run to adjust output levels.

Total Variable Cost

The sum of all variable expenses associated with producing a particular level of output.

Total Fixed Cost

An expenditure that does not change with the level of production or sales over a short period.