Other things being equal,which of the following would increase the market demand for labor?

Question

Quizplus · Accepted Answer

An increase in the marginal productivity of labor would increase the demand for labor because firms would want to hire more workers to produce more output. A fall in the wage rate (Choice A) would decrease the cost of labor, but would not necessarily increase the demand for labor because it would not change the productivity of labor. A decrease in the cost-effectiveness of labor relative to other inputs (Choice C) would decrease the demand for labor because firms would switch to using other inputs that are more cost-effective.

Other Things Being Equal,which of the Following Would Increase the Market