A Firm's Demand Curve for Labour Will Shift Because Of

question 79

Multiple Choice

A firm's demand curve for labour will shift because of:

• A) a decrease in the wage rate.
• B) an increase in the wage rate.
• C) changes in preferences and the cultural norms that define how much we work.
• D) a change in the product's price.

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Definitions:

Least-Cost Combination

An economic principle where firms seek to minimize their costs of production by using the most efficient combination of resources.

Inputs

The inputs including workforce, materials, and financial investment employed in the process of manufacturing products or delivering services.

Marginal Revenue Products

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product, including raw material, labor, and overhead costs.