Answer the question on the basis of the following supply information facing a single firm in a particular labor market: $$51102153204255\begin{array}{l}\text { Wage }\quad\quad{Quantity }\\\begin{array} { c c c } \text { Rate } && \text { Supplied } \\\hline\$ 5 & & 1 \\10 & & 2 \\15 & & 3 \\20 & & 4 \\25 & & 5\end{array}\end{array}$ Refer to the given information.This labor supply curve demonstrates that:

A) the firm is selling its output under imperfectly competitive conditions.
B) the firm is selling its output under purely competitive conditions.
C) higher wage rates must be paid to successive workers to overcome their higher opportunity costs.
D) the firm is hiring labor under purely competitive conditions.

Question

Answer the question on the basis of the following supply information facing a single firm in a particular labor market:

$51102153204255\begin{array}{l}\text { Wage }\quad\quad{Quantity }\\\begin{array} { c c c } \text { Rate } && \text { Supplied } \\\hline\$ 5 & & 1 \\10 & & 2 \\15 & & 3 \\20 & & 4 \\25 & & 5\end{array}\end{array}

Refer to the given information.This labor supply curve demonstrates that:

A) the firm is selling its output under imperfectly competitive conditions.
B) the firm is selling its output under purely competitive conditions.
C) higher wage rates must be paid to successive workers to overcome their higher opportunity costs.
D) the firm is hiring labor under purely competitive conditions.

ABAALA IKARA · Accepted Answer

Final Answer : C, Explanation :  The labor supply curve shows that as the wage rate increases, the quantity of labor supplied also increases, indicating that higher wages are needed to attract additional workers, likely due to their higher opportunity costs.

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