QuestionJune 2, 2025

The labor-demand curve of a firm Multiple Choice will shift to the left if the price of the product that the labor is producing falls. is perfectly elastic if the firm is selling its product in a purely competitive market. reflects a direct relationship between the number of workers hired and the money wage rate. is the same as its marginal product curve.

The labor-demand curve of a firm Multiple Choice will shift to the left if the price of the product that the labor is producing falls. is perfectly elastic if the firm is selling its product in a purely competitive market. reflects a direct relationship between the number of workers hired and the money wage rate. is the same as its marginal product curve.
The labor-demand curve of a firm
Multiple Choice
will shift to the left if the price of the product that the labor is producing falls.
is perfectly elastic if the firm is selling its product in a purely competitive market.
reflects a direct relationship between the number of workers hired and the money wage rate.
is the same as its marginal product curve.

Solution
3.0(256 votes)

Answer

will shift to the left if the price of the product that the labor is producing falls. Explanation 1. Analyze the effect of product price on labor-demand curve If the price of the product falls, the revenue generated by each unit of labor decreases, leading to a decrease in demand for labor. Thus, the labor-demand curve shifts to the left. 2. Evaluate elasticity in a purely competitive market In a purely competitive market, firms are price takers, and the labor-demand curve is not perfectly elastic; it depends on marginal productivity. 3. Examine the relationship between workers hired and wage rate The labor-demand curve reflects an inverse relationship between the number of workers hired and the money wage rate, not a direct one. 4. Compare labor-demand curve with marginal product curve The labor-demand curve is derived from the marginal revenue product (MRP) curve, which is different from the marginal product curve.

Explanation

1. Analyze the effect of product price on labor-demand curve<br /> If the price of the product falls, the revenue generated by each unit of labor decreases, leading to a decrease in demand for labor. Thus, the labor-demand curve shifts to the left.<br /><br />2. Evaluate elasticity in a purely competitive market<br /> In a purely competitive market, firms are price takers, and the labor-demand curve is not perfectly elastic; it depends on marginal productivity.<br /><br />3. Examine the relationship between workers hired and wage rate<br /> The labor-demand curve reflects an inverse relationship between the number of workers hired and the money wage rate, not a direct one.<br /><br />4. Compare labor-demand curve with marginal product curve<br /> The labor-demand curve is derived from the marginal revenue product (MRP) curve, which is different from the marginal product curve.
Click to rate:

Similar Questions