Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 69, Problem 5MCQ
To determine
The individual’s
Expert Solution & Answer
Answer to Problem 5MCQ
From the available options, the correct option is downward sloping.
Explanation of Solution
Due to diminishing marginal product, the individual firm’s demand curve would be downward sloping. By using one additional unit of labor the total output starts decreasing.
When the demand for labor is constant, the curve would be upward-sloping. The demand curve would be horizontal when the demand for labor ties to the
Therefore, all options: b, c, d, and e are incorrect which means the correct option is a because the demand curve of individual firms slopes downward by hiring more units of labor as more and more workers lead to a decline in the marginal product of the firm.
Economics Concept Introduction
Introduction: A demand curve is a graphical representation that shows how sensitive demand is toward the price of a good or service.
Chapter 69 Solutions
Krugman's Economics For The Ap® Course
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Similar questions
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