Asked by Tyler Thompson on Jul 18, 2024
Verified
If the wage rate in a purely competitive labor market increases, it will cause the
A) marginal resource cost curve for a single competitive firm in the industry to shift down.
B) marginal resource cost curve for a single competitive firm in the industry to shift up.
C) labor supply curve for a single competitive firm to shift downward.
D) labor supply curve for the industry to shift rightward.
Marginal Resource Cost Curve
A graphical representation showing the change in total cost incurred by a firm when it utilizes an additional unit of an input or resource.
Competitive Labor Market
A competitive labor market is characterized by numerous employers and workers where no single entity has the power to influence wages, ensuring efficient allocation of labor.
- Gain insight into the essential tenets of competitive labor markets, focusing on the variables that dictate the equilibrium state for employment levels.
- Expound on the interrelation between a particular organization's requirement for labor and the total market labor supply.
Verified Answer
PJ
Punnapat JirasarunpatJul 20, 2024
Final Answer :
B
Explanation :
An increase in the wage rate in a purely competitive labor market increases the cost of hiring an additional unit of labor for a firm, which is reflected by an upward shift in the marginal resource cost curve.
Learning Objectives
- Gain insight into the essential tenets of competitive labor markets, focusing on the variables that dictate the equilibrium state for employment levels.
- Expound on the interrelation between a particular organization's requirement for labor and the total market labor supply.
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