A firm's demand curve for labour shifts when there is a change in the

Question

Quizplus · Accepted Answer

The demand for labour is derived from the demand for the firm's output. Therefore, a change in the price of the firm's output will result in a change in the demand for labour. If the price of the firm's output increases, the demand for labour will increase, and vice versa. A change in the wage rate, opportunity cost of labour, number of workers, or marginal cost of labour can affect the firm's cost of production, but it does not necessarily shift the demand curve for labour.

A Firm's Demand Curve for Labour Shifts When There Is