A firm's demand for labor is derived in part from
A) worker preferences for jobs.
B) consumer demand for the firm's product.
C) the level of monthly union dues.
D) the firm's sunk costs.
E) the value of the firm's stock price.

Question

Quizplus · Accepted Answer

A firm's demand for labor is primarily driven by consumer demand for the firm's product. When demand for the product increases, the firm typically needs more labor to increase production, hence the demand for labor is derived from the product demand.

A Firm's Demand for Labor Is Derived in Part from