A reason why a perfectly competitive firm's demand for labor curve slopes downward is that
A) each additional unit of labor hired is less efficient than previously hired units.
B) the extra cost of hiring additional units of labor increases as a firm hires more units of labor.
C) in the short run, as more labor is hired, labor's marginal product falls because of the law of diminishing returns.
D) the firm's demand curve for the product that uses labor is downward sloping.
Question 2
Average variable cost can be calculated using any of the formulas below except
A) (TC - FC)/Q. B) TVC/Q. C) (TC - FC)/Q. D) (TC/Q) - AFC.
Stages of Labor
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Competitive inhibitor
J or U dose-response curve
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Effect of Shifting Labor into R&D