Suppose a Firm Finds That It Must Raise Wages for All

question 110

Multiple Choice

Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce.This means

• A)It will produce more than it would in a competitive labor market.
• B)The marginal factor cost curve is below the average cost of labor curve.
• C)The firm has market power.
• D)The labor market is perfectly competitive.

---

Definitions:

Health Care Professionals

Trained and licensed individuals who provide preventive, curative, promotional, or rehabilitative health care services to individuals or communities.

Health Maintenance Organization

A type of health insurance plan that provides a wide range of healthcare services through a network of providers who agree to supply services to members.

Consumer-Driven Health Plan

A type of health insurance plan that places more control and decision-making in the hands of the consumer, typically involving high deductibles and health savings accounts.

Defined-Contribution Plan

A retirement plan where the amount of the employer's annual contribution is specified, and the future benefits fluctuate based on investment performance.