Correct Option: C

The term ‘supply of labour’ refers to the number of hours of a given type of labour which will be offered for hire at different wage rates. Usually, it is found that higher the wage rates larger is the supply indicating a direct relationship that exists between the wage rate i.e. the price of labour and labour hours supplied. The supply of labour is very much affected by the work leisure ratio which in turn is affected by the changes in wage rates. The supply of labour in an economy depends on various economic and non-economic factors such as: population, sex composition, age composition of the population, willingness to work, wage rates, migration and immigration, working hours, social attitude and standard, legal barriers, education and training, employer’s attitude, labour supply and leisure, efficiency of workers, etc. In economics, the marginal product of labor (MPL) is the change in output that results from employing an added unit of labor. It has nothing to do with the supply of labour.