Because of ________ marginal product of labor,the labor demand curve slopes ________.
A)rising,upward
B)rising,downward
C)diminishing,downward
D)diminishing,upward

Question

Quizplus · Accepted Answer

When the marginal product of labor decreases, it means that each additional unit of labor adds less to the total output. This results in firms being willing to hire fewer workers at a higher wage, which causes the labor demand curve to slope downward. Therefore, the correct choice is C, where the marginal product of labor is diminishing and the labor demand curve slopes downward.

Because of ________ Marginal Product of Labor,the Labor Demand Curve