A firm's demand for labor is downward sloping because of
A) diminishing marginal productivity of labor.
B) diminishing marginal utility.
C) price pressure.
D) workers' increased willingness to work for higher wages.

Question

Quizplus · Accepted Answer

The demand for labor is downward sloping due to the principle of diminishing marginal productivity of labor. As additional units of labor are added, the additional output produced by each unit gradually decreases, resulting in a decrease in the firm's demand for labor.

A Firm's Demand for Labor Is Downward Sloping Because of