How would each of the following affect a firm’s short-run demand for labour: a decrease in...
How would each of the following affect a firm’s short-run demand for labour:
a decrease in the supply of a competitive market (assume the firm does not shut down)?
an increase in the productivity of workers?
Homework Answers
Answer : 1) If in competitive market the supply decrease then the demand for labor will decrease. Because decrease in supply means decrease in output level. If output level decrease then the demand for labor decrease.
2) If productivity of workers increase then the demand for labor increase. Because by using labor input in production process the producer can produce more.
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How would each of the following affect a firm’s short-run demand
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