Which Of The Following Is A True Statement About The Labor Market: A. Firms Will Always Hire Where The Demand For Labor…

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6. Which of the following is a true statement about the Labor Market: a. firms will always hire where the demand for labor crosses the supply of labor b. the demand for labor is a horizontal line at the market wage c. the demand for labor is not related to the Goods and Service market d. the demand for labor is a derived demand e. none of the above

Expert's Answer

Ans.) Option (A) is false. Firms will not hire any labor after the labor demand curve crosses the supply labor curve. Points beyond the equilibrium will cost firms more than what their profits. So, they will not dem…

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