If the Wage Rate Is Fixed at a Certain Level

question 103

Multiple Choice

If the wage rate is fixed at a certain level, the:

• A) total wage cost curve is horizontal.
• B) total wage cost curve is a straight upward sloping line.
• C) MP must be constant.
• D) total wage cost curve will increase at an increasing rate.
• E) total wage cost curve will increase at a decreasing rate.

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Definitions:

Policy Decision

A choice made by authorities or organizations regarding rules, actions, or standards that guide operations or govern behavior.

Retaliate

To respond to a perceived wrong by taking revenge or engaging in counteractions.

Congruence

The degree of alignment between an individual’s values, beliefs, and behaviors, or between different elements of an organization or system.

Alignment

The process of adjusting or arranging various parts or aspects of something to achieve harmony, ensure proper positioning, or mutually reinforcing direction.