Due to the operation of the law of diminishing returns, the demand curve of labour
In microeconomic labour theory, because of the operation of the Law of Diminishing Marginal Returns (as additional units of labour are added to a fixed stock of capital, the…
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Due to the operation of the law of diminishing returns, the demand curve of labour
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Correct answer C
In microeconomic labour theory, because of the operation of the Law of Diminishing Marginal Returns (as additional units of labour are added to a fixed stock of capital, the Marginal Physical Product and Marginal Revenue Product of labour decline), the short-run demand curve for labour 'slopes downward' from left to right.
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UGC NET HRM / Labour Welfare and Industrial Relations