Final answer:
The derived demand curve for labor illustrates the maximum amount of labor, in terms of labor hours, that firms are willing to hire at various wage rates, which is option C in the given choices.
Step-by-step explanation:
The derived demand curve for labor depicts the quantity of labor that employers are willing to hire at different wage levels, assuming all other factors remain constant (ceteris paribus).
When wages rise, the quantity of labor demanded typically decreases, leading employers to hire fewer workers, reflected by an upward movement along the demand curve.
Conversely, when wages fall, the quantity of labor demanded increases, and employers tend to hire more workers, resulting in a downward movement along the demand curve.
Considering these principles, the correct answer to the question is: The derived demand curve for labor shows the: C. Maximum amount of labor, measured in labor hours, that a firm will hire at various wages.
This captures the relationship between wages and the quantity of labor firms are prepared to employ to maximize profits, as hiring continues up to the point where the demand for labor equals the value of the marginal product (VMP) or marginal revenue product (MRP) and equals the marginal cost of labor (MCL).