If a Firm in a Competitive Labor Market Offers Less

question 15

Multiple Choice

If a firm in a competitive labor market offers less than the market wage rate if it will

• A) be able to attract a large number of employees because the marginal revenue product is low.
• B) find that it has broken a federal wage law.
• C) attract too few employees.
• D) find that the supply is greater than the demand.

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Definitions:

Assets

Resources owned or controlled by a person or company, expected to produce economic value or future benefits.

Cash

Liquid assets held by a firm, used to meet short-term obligations or for transactions; the most basic form of company resources.

Cost Model

An accounting method where an asset is valued based on the historical cost minus any accumulated depreciation and impairment costs rather than its current market value.

Initial Recognition

refers to the first time an entity records an asset, liability, equity, income, or expense based on its recognition criteria in the accounting records, establishing its inclusion in the financial statements.