An Increase in the Price of Labor Will,in the Short-Run,cause

question 72

Multiple Choice

An increase in the price of labor will,in the short-run,cause a competitive firm's

• A) marginal cost to increase,the quantity it sells to decrease and therefore reduce the quantity demand of labor.
• B) price of its output to increase,leaving demand for labor unchanged.
• C) marginal revenue product of labor to decrease and therefore reduce demand for labor.
• D) marginal revenue product of labor to increase and therefore increase demand for labor.

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