Suppose the Supply of Labor Schedule Increases in a Perfectly

question 122

Multiple Choice

Suppose the supply of labor schedule increases in a perfectly competitive labor market while the market demand schedule remains unchanged. A profit-maximizing representative firm will

• A) hire more workers.
• B) hire fewer workers.
• C) hire the same number of workers.
• D) substitute capital for labor.

---

Definitions:

Business Activity

Any action undertaken by individuals or companies, such as buying, selling, marketing, or production, aimed at generating income.

Marketing

Marketing encompasses the strategies and tactics companies use to identify, engage, and satisfy customers' needs and wants, thereby generating sales and fostering brand loyalty.

Separate Legal Entity

A business structure that is legally distinct from its owners, allowing it to own assets, incur liability, and conduct business in its own name.

Corporation

A legal entity formed by individuals, shareholders, or shareholders, recognized as separate from its owners with its own rights and liabilities.