A firm's ________ when its inventory increases.
A) labor demand curve is likely to shift to the right
B) labor demand curve is likely to shift to the left
C) total product curve is likely to shift upward
D) cost curve is likely to shift downward

Question

Quizplus · Accepted Answer

When a firm's inventory increases, it typically means that demand for its products has decreased. As a result, the firm may choose to reduce production and cut back on labor demand. Therefore, the labor demand curve is likely to shift to the left.

A Firm's ________ When Its Inventory Increases