The labor-supply curve is downward sloping because of the law of diminishing marginal returns.

Question

Quizplus · Accepted Answer

The labor-supply curve is upward sloping because as wages increase, people are willing to work more hours or be more likely to enter the workforce. The law of diminishing marginal returns refers to the decreasing additional output that results from increasing a single input (like labor) while holding all other inputs constant.

The Labor-Supply Curve Is Downward Sloping Because of the Law