A) Why is the demand of labor a derived demand?
b) What is the relationship between productivity and the wages earned by an employee? What are some factors that determine the level of your income?
c) What is the law of diminishing marginal productivity? Give an example from your workplace/household of the law of diminishing marginal productivity?.
a) a derived demand is a demand for one good or service occurs as a result of demand for another. Labour is a derived demand because there is no direct demand for labour. The labour is demanded as a result of demand for other product (and hence you need labour to produce this product). Labour by itself generates no ...