If a Perfectly Competitive Firm Is Currently Employing Workers to the Point

question 243

Multiple Choice

If a perfectly competitive firm is currently employing workers to the point where the value of the last worker's marginal product is equal to the wage rate, and the government imposes a minimum wage higher than the value of the worker's marginal product, we can predict that

• A) the firm will pay the higher wage rate and not change the number of workers hired.
• B) the firm will no longer employ the marginal worker.
• C) the firm will increase its price.
• D) the firm will employ more workers.

---

Definitions:

Flavors

Distinctive tastes and aromas of food or drink, produced by various compounds.

Sweetness

A quality of having a pleasant or sugary taste.

Neurotransmitter

Chemicals in the nervous system that transmit signals from one neuron to another across synapses.

Behavioral Effects

The impacts or changes in behavior that result from exposure to a stimulus or from participation in a specific behavior.