If a Firm Is a Factor Price Taker in the Labor

question 17

Multiple Choice

If a firm is a factor price taker in the labor market,

• A)it must pay higher wages in order to hire additional workers.
• B)it can hire all the workers it wants to at the going wage rate.
• C)it must hire all workers who apply for a job.
• D)it will continue to hire workers as long as MFC > MRP.

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Definitions:

Functionalism

A theoretical framework in sociology that emphasizes the interconnectedness of society's various institutions and their roles in maintaining social stability and functionality.

Sociologists

Experts in the social sciences who study the structure, development, and functioning of human society, and the dynamics of social relationships and behaviors.

Conflict Theory

A view in sociology that sees social existence as a contest, concentrating on how resources, authority, and disparities are spread.

Karl Marx

A 19th-century philosopher, economist, and sociologist whose works on the theory of capitalism and class struggle laid the foundation for Marxist theory.