Question

We say that the demand for labor is a derived demand because Multiple Choice labor is a necessary input in the production of every good or service. the forces of supply and demand do not apply directly to labor markets. we demand the product that labor helps produce rather than labor service per se. labor is hired using the MRP = MRC rule.

Answer 1

Answer:

The correct answer is: we demand the product that labor helps produce rather than labor service per se.

Explanation:

The demand for inputs of production such as labor is called derived demand. This is because their demand is derived from the demand for goods that they are used to produce.

These inputs are used in the process of production.  The derived demand affects the price of derived goods.