If the Price of Labor Increases, the Typical Perfectly Competitive

question 16

Multiple Choice

If the price of labor increases, the typical perfectly competitive firm in the short run will

• A) produce more output.
• B) hire less labor.
• C) hire the same labor and produce the same output.
• D) hire more labor.

---

Definitions:

Terrorists

Individuals who use violence and intimidation, especially against civilians, in the pursuit of political aims.

Hijackers

Individuals who unlawfully seize control of a vehicle, such as a plane or ship, often to reach a particular goal or demand.

Hydrocarbon Combustions

The chemical process in which hydrocarbons react with oxygen to produce carbon dioxide, water, and heat.

Nitroglycerin Explosions

The sudden and violent release of energy due to the rapid decomposition of nitroglycerin, a highly explosive chemical compound used in dynamites and propellants.