Asked by
Parvina Rahmatilloyeva
on Dec 12, 2024
Verified
An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to
A) an increase in the marginal revenue product of labor.
B) a decrease in the marginal revenue product of labor.
C) an increase in the marginal revenue product of automobiles.
D) a decrease in the marginal revenue product of automobiles.
E) a decrease in the price of automobiles.
Marginal Revenue Product
The additional revenue generated from employing one more unit of a resource, such as labor or capital.
Demand for Automobiles
Refers to consumers' desire and willingness to purchase vehicles, influenced by factors such as prices, incomes, and personal preferences.
- Understand the relationship between the demand for a product and the demand for labor used to produce that product.
Verified Answer
AB
Learning Objectives
- Understand the relationship between the demand for a product and the demand for labor used to produce that product.
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