Given That a Firm Is Selling Its Product in a Competitive

Multiple Choice

Given that a firm is selling its product in a competitive market,meaning that its marginal revenue is constant,what would the Law of Diminishing Returns to labor inputs imply about the demand for labor?

A) That the demand for labor would be constant if the market is stable
B) That the firm would pay increasing wages to attract qualified employees
C) The demand would diminish with the output of new workers
D) The demand curve for labor has a negative slope resulting from declining marginal product
E) The Law of Diminishing Returns has no effect on labor demand