The value of labor falls as additional units of labor are hired because of:
A) declining profits and increasing costs.
B) decreasing marginal productivity and increasing costs.
C) declining profits and the need to lower product price to sell additional units.
D) decreasing marginal productivity and, in most cases, the need to lower product price to sell additional units.
Correct Answer:
Verified
Q7: A derived demand for factors of production
Q8: The demand for labor is called a
Q9: Since the demand for a factor of
Q10: The wage rate that an individual firm
Q11: An individual firm's demand curve for labor
Q13: The declining value of labor productivity as
Q14: The labor demand curve for an individual
Q15: The value of labor is determined by
Q16: The Law of Diminishing Returns states:
A) there
Q17: Marginal product is:
A) total product divided by
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