In many cases,labour represents 70% of all inputs in production.Firms will only hire the workers they need for their targeted level of production.Hence,a firm's demand for labour is a

Question

Quizplus · Accepted Answer

The fact that a firm's demand for labor is derived from the target level of production makes it a derived demand. This means that the demand for labor is derived from the demand for the goods or services produced by the labor. The firm will only hire as much labor as is needed to produce the targeted level of output. Therefore, options A, B, C, and E are not appropriate since none of them captures this concept.

In Many Cases,labour Represents 70% of All Inputs in Production