If the marginal revenue product of labor improves,which of the following shifts in the labor market should occur?
A)Supply of labor should shift to the left.
B)Demand for labor should shift to the left.
C)Supply of labor should shift to the right.
D)Demand for labor should shift to the right.

Question

Quizplus · Accepted Answer

An improvement in the marginal revenue product of labor means that the additional output produced by each unit of labor has increased. This should lead to an increase in the demand for labor, causing the demand for labor curve to shift to the right.

If the Marginal Revenue Product of Labor Improves,which of the Following