1) Explain where a firm's demand for labor comes from (how is the demand for labor determined).
2) Give three reasons why the demand for labor will decrease. What would cause employers to hire less workers at the same wage rate?
The Demand for Labor
The demand for labor is often characterized by economists as a derived demand. It is possible to identify the underlying factors that determine the demand for labor and to assess the manner in which they may cause that demand to shift.
Answer and Explanation: 1
1. The demand for labor in a competitive labor market is equal to the downward sloping portion of the marginal revenue product of labor...
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fromChapter 7 / Lesson 4
Learn about the labor supply and demand curves in economics. Explore the labor supply and demand curve shifts, and study the factors that impact both curves.