In part,the demand for labor depends on the
A) supply of labor.
B) number of workers available.
C) price of the firm's output.
D) workers' income.
E) wage rate at which the labor supply curve starts to bend backwards.

Question

Quizplus · Accepted Answer

The demand for labor is ultimately derived from the demand for the firm's output. If the price of the output increases, the firm may need to increase production and therefore may require more labor to produce the additional output. Conversely, if the price of the output decreases, the firm may need to reduce production and therefore may require less labor. Therefore, the price of the firm's output is a significant factor affecting the demand for labor.

In Part,the Demand for Labor Depends on the