Which of the following events could increase the demand for labor? a. An increase in the marginal productivity of workers b. A decrease in the amount of capital available for workers to use c. A decrease in the wage paid to workers d. A decrease in output price

Business · College · Mon Jan 18 2021

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Increasing the demand for labor typically involves factors that encourage or necessitate the hiring of more workers. Among the options provided:

a. An increase in the marginal productivity of workers is most likely to increase the demand for labor. When workers become more productive, they can produce more output per unit of labor input making them more valuable to employers. As a result, firms may seek to hire additional workers to capitalize on their increased productivity, leading to an increased demand for labor.






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