If we move to the right along the upward-sloping labor supply curve,we observe that the cost of labor
A)Increases due to the increasing opportunity cost.
B)Increases due to the decreasing opportunity cost.
C)Decreases due to the increasing opportunity cost.
D)Decreases due to the decreasing opportunity cost.

Question

Quizplus · Accepted Answer

Moving to the right along the upward-sloping labor supply curve means moving from lower levels of labor supply to higher levels. As the supply of labor increases, the opportunity cost of labor also increases. This is because individuals have to give up more leisure time or other activities they value more in order to work more hours, thus making the cost of labor higher. Therefore, the cost of labor increases due to the increasing opportunity cost.

If We Move to the Right Along the Upward-Sloping Labor