The labor demand curve of a purely comptetive seller:?

Question

A. slopes downward because of diminishing marginal productivity

B. slopes downward because of diminishing marginal utility

C. slopes downward because of elasticity of demand is always less than unity

D. is perfectly elastic at the going wage rate

Answer 1

A. slopes downward because of diminishing marginal productivity

Answer 2

A. slopes downward because of diminishing marginal productivity

the more workers you get, the more productivity you get, but marginally the productivity decreases. you have two workers, you get a third and you make 5 more items, you get a fourth and you make 10 more items, you get a fifth and you make 14 more items.... I'm not sure if that makes sense, but that's how it is.

Answer 3

C, I can only sell what there is a demand for. As sales decrease, so will labor demands