The demand for labour depends primarily on the additional output produced as a result of hiring an additional worker and
A)the additional revenue received from selling the output produced as a result of hiring an additional worker.
B)the payment made to the worker for producing the additional output.
C)the elasticity of demand for the output produced by the worker.
D)the number of workers willing to produce the additional output.

Question

Quizplus · Accepted Answer

The demand for labour is derived from the additional output produced by hiring an additional worker which can generate additional revenue from selling that output. Therefore, the primary factor that affects demand for labour is the additional revenue received from selling the output produced by hiring an additional worker.

The Demand for Labour Depends Primarily on the Additional Output