The labor demand curve of a purely competitive seller:

A) slopes downward because the firm must lower price to sell more output.
B) slopes downward because labor productivity increases as successive workers are hired.
C) is perfectly elastic because the firm is hiring an insignificant portion of the total labor supply.
D) slopes downward because the marginal product of successive workers declines.

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing to hire at different wage rates, assuming other factors remain constant.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and products that are homogeneous.

Labor Productivity

Total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work.