Why is the demand curve for labor downward-sloping? What causes the labor demand curve for a firm to shift?
What will be an ideal response?
The marginal revenue product curve is the labor demand curve. The marginal revenue product is derived from the MPP and the price of the goods and services being produced. The curve is downward-sloping because of the law of diminishing returns, which causes the MPP to decline as more labor is hired. The demand curve will shift when either worker productivity changes or the prices of the goods and services being produced change.
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Under the Bertrand Model of oligopoly
a. output will be greater than under monopoly but less than competitive output. b. output will be less than under monopoly but greater than competitive output. c. output will be equal to competitive output. d. output will be equal to monopoly output.
In recent years, Japan's capital stock has increased by about 6 percent from one year to the next. As a result, we would expect
A) a leftward shift in Japan's aggregate demand curve. B) a movement up along Japan's short-run aggregate supply curve. C) only Japan's long-run aggregate supply curve to shift rightward. D) rightward shifts in both Japan's short-run aggregate supply and long-run aggregate supply curves.
The payroll tax is a tax imposed on ________ that is used to fund Social Security and Medicare
A) workers only B) employers only C) employers and workers D) the unemployed
Fragmented markets are those that are
a. functioning in relative isolation from each other b. separated by considerable distance c. functioning only some of the time d. easily destroyed by outside events e. none of the above