The market supply curve for labor is upsloping because
A) of diminishing returns.
B) employers as a group must pay higher wage rates to obtain more workers.
C) of declining MRC.
D) each employer is a "wage taker."

Question

Quizplus · Accepted Answer

The upsloping nature of the market supply curve for labor is a result of employers as a group having to pay higher wage rates to attract more workers. As the wage rate increases, the opportunity cost of leisure time decreases, and more workers are willing to supply their labor. This creates an upsloping supply curve for labor as more workers are willing to enter the labor force at higher wage rates.

The Market Supply Curve for Labor Is Upsloping Because