A firm's demand for labor is derived in part from
A)government policy.
B)consumer demand for the firm's product.
C)unionized workers.
D)the firm's sunk costs.
E)the value of the firm's stock price.

Question

Quizplus · Accepted Answer

A firm's demand for labor is derived from consumer demand for the firm's product, as the amount of labor needed is dependent on how much product the firm needs to produce to meet consumer demand. The other options, such as government policy, unionized workers, sunk costs, and stock price, may indirectly affect a firm's demand for labor, but they are not directly related to it.

A Firm's Demand for Labor Is Derived in Part from