A reason why a perfectly competitive firm's demand for labor curve slopes downward is that
A) each additional unit of labor hired is less efficient than previously hired units.
B) the extra cost of hiring additional units of labor increases as a firm hires more units of labor.
C) in the short run, as more labor is hired, labor's marginal product falls because of the law of diminishing returns.
D) the firm's demand curve for the product that uses labor is downward sloping.
C
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Starting from a situation where country A which exports good S and imports good T has a larger trade triangle than country B, explain how the process of reciprocal demand leads to international trade equilibrium
What will be an ideal response?
What is the present value of an infinite stream of annual payments of $10,000 per year if the first payment is received one year from today? Assume the interest rate is 10 percent
a. $100,000 b. $1,000,000 c. $10,000,000 d. $1,000,000,000
Isabella decides to buy a dress that Olivia has for sale; they agree on a price of $20 . Which of the following best describes who gains and who loses from the transaction?
a. If the dress originally costs more than $20, Isabella gains and Olivia loses. b. If the dress originally costs less than $20, Olivia gains and Isabella loses. c. Both parties expect to gain from this transaction. d. If Olivia gains from the transaction, Isabella must lose an equal amount.
Neither public goods nor common resources are
a. excludable, but only public goods are not rival in consumption. b. excludable, but only common resources are not rival in consumption. c. rival in consumption, but only public goods are not excludable. d. rival in consumption, but only common resources are not excludable.