Asked by
Timi Maria DeAsis
on Oct 26, 2024
Verified
Benny employs people to sell candy bars at intersections.Assume that Benny can obtain candy bars to sell for no cost.The marginal product of the last worker Benny hired is 20 candy bars per hour.Benny pays $7 per worker per hour and sells the candy bars for $1 each.If the price of candy bars rises to $2,then the:
A) demand for labor increases.
B) demand for labor decreases.
C) quantity demanded of labor increases,but the demand for labor curve does not shift.
D) quantity demanded of labor decreases,but the demand for labor curve does not shift.
Marginal Product
The extra output produced by using an additional unit of a particular production factor, while holding other factors steady.
Candy Bars
Confectionery items that consist of chocolate and other sweet ingredients, often with a filling or coating.
- Grasp the concept of the marginal product of labor and its impact on labor demand.
- Distinguish between the demand for labor and the quantity demanded of labor.
Verified Answer
CB
Learning Objectives
- Grasp the concept of the marginal product of labor and its impact on labor demand.
- Distinguish between the demand for labor and the quantity demanded of labor.