A firm's demand for labour increases and its demand curve for labour shifts rightward if
A) the price of its product falls.
B) its value of marginal product decreases.
C) an advance in technology increases the marginal product of labour.
D) the wage rate falls.

Question

Quizplus · Accepted Answer

An advance in technology increases the marginal product of labour, making each worker more productive. This increases the value of hiring additional workers, leading to a rightward shift in the demand curve for labour.

A Firm's Demand for Labour Increases and Its Demand Curve