What would cause an increase in a perfectly competitive firm's demand for labour?
A)a decrease in the market wage rate.
B)an increase in the market demand for the firm's product.
C)a decrease in the marginal product of workers.
D)an increase in the quantity of labour supplied.

Question

Quizplus · Accepted Answer

An increase in the market demand for the firm's product would increase the firm's revenues and profits, incentivizing the firm to increase production by hiring more workers. This would lead to an increase in the demand for labor by the firm.

What Would Cause an Increase in a Perfectly Competitive Firm's