The firm's demand for labour is derived directly from _______ .
A) labour's cost
B) the wage rate
C) the supply of labour
D) labour's value of marginal product

Question

Quizplus · Accepted Answer

The firm's demand for labour is derived directly from labour's value of marginal product because firms decide on the amount of labour to hire based on the additional value generated by that labour, not just its cost, wage rate, or the supply of labour.

The Firm's Demand for Labour Is Derived Directly from _______