The demand for labor is a derived demand. Employers hire workers until the:
a. wage rate equals the average product of labor
b. wage rate equals the marginal revenue product of labor.
c. average product of labor is zero.
d. marginal product of labor is zero.
b
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After the formation of the European Community (EC), three new nations were admitted in 1973 based on their conformance and compatibility with existing democratic norms, economic stability, and economic development. The nations were:
A) Portugal, Spain, and Finland. B) Belgium, the Netherlands, and Luxembourg. C) Denmark, Ireland, and the United Kingdom. D) Italy, Greece, and Turkey.
When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has no reason to trade with others. B. has a comparative advantage at producing that good. C. has an absolute advantage at producing that good. D. is efficient in production.