In the Short Run,which One of the Following Causes a Competitive

question 19

Multiple Choice

In the short run,which one of the following causes a competitive firm to hire more labor?

• A) an increase in wage rate
• B) an increase in the output price
• C) a specific tax imposed on the firm's output
• D) a decrease in the output price

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Legal Formalities

The required procedures or steps mandated by law for ensuring that legal acts or documents are valid and enforceable.

Officers

Individuals appointed or elected to oversee the management and daily operations of a corporation or other entity, typically holding positions such as CEO, CFO, or President.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued.