Question

What determines the demand for labor for a firm with market power in the output market?

Short answer

The quantity of goods that a monopoly or a corporation with market dominance wishes to produce determines the demand for labor for a firm with market power in the output market.

Step-by-step solution

Concept Introduction

Demand of labor:

The amount of labor demand that an economy or enterprise is willing to employ at a given point in time is referred to as demand for labor.

Explanation

The wage pay is a component of the demand for labor curve that slopes downward. The marketplace demand for labor is the horizontal total of all organizations' labor needs. The number of goods that a monopoly or a corporation with market dominance has to create determines the requirement for labor for a company with market power in the output marketplace.

Final answer

As a result, the market demand for labor is the horizontal sum of all firms' labor demands.