The demand for labour:
A)is not the result of a maximization process.
B)is related to the demand for leisure.
C)is identical to the value of the marginal product when there is one input.
D)is identical to the value of the marginal product when there are two inputs.

Question

Quizplus · Accepted Answer

The demand for labour is based on the value of the marginal product, which is the additional output produced by an additional unit of labour. This means that the demand for labour is derived from the productivity of the workers and their contribution to the production process. When there is only one input, such as labour, the value of the marginal product is identical to the demand for labour. Therefore, option C is the correct answer. Options A and B are incorrect as they are not related to the theory of demand for labour. Option D is incorrect as it refers to two inputs, which is not relevant to the question.

The Demand for Labour