Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

If firms are competitive and profit-maximizing, the demand curve for labor is determined by:

A. the opportunity cost of workers' time.
B. the value of the marginal product of labor.
C. offsetting income and substitution effects.
D. the value of the marginal product of capital.

Sagot :

GinnyAnswer

Final answer:

The demand curve for labor is dictated by the value of the marginal product of labor in profitable and competitive firms. This value reflects the firm's hiring decisions until marginal revenue product matches marginal factor cost. Various factors affect the demand curve, including technology, product pricing, and the number of firms operating.


Explanation:

The demand curve for labor in competitive and profit-maximizing firms is determined by the value of the marginal product of labor. This means that the firm will hire labor until the point at which its marginal revenue product equals its marginal factor cost.

In a perfect competition scenario, marginal revenue product equals the marginal product of labor times the price of the good being produced, and any changes in these variables will shift the curve, along with changes in technology, product demand, or the number of firms.

Therefore, the demand for labor can be defined as the marginal product of labor times the value of the output to the firm, guiding the firm in maximizing its profits.


Learn more about Labor demand in profit-maximizing firms here:

https://brainly.com/question/29990346


Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.