The demand curve for labor slopes downward because
A)few workers work at low wages.
B)capital has been substituted for labor in most industries.
C)of the diminishing marginal product of labor.
D)All of the above are true.

Question

Quizplus · Accepted Answer

The demand for labor slopes downward due to the law of diminishing marginal productivity of labor, which states that as the number of workers employed increases, each additional worker's marginal product decreases, causing firms to demand less labor at higher wage rates. The other options, such as few workers working at low wages and the substitution of capital for labor in most industries, are not directly related to the slope of the demand curve for labor.

The Demand Curve for Labor Slopes Downward Because