When Hiring Additional Workers, a Firm Operating in a Perfectly

question 342

Multiple Choice

When hiring additional workers, a firm operating in a perfectly competitive labor market will

• A) have to offer higher wages to hire additional workers, but the old workers do not get the higher wage.
• B) have to offer higher wages to hire additional workers, and the old workers will also receive the new, higher wage.
• C) be able to hire additional workers without offering higher wages.
• D) be able to hire additional workers at lower wages because the new workers have been unemployed.

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Definitions:

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