If a Firm Operates in a Competitive Labor Market and in a Non-Competitive

question 6

Multiple Choice

If a firm operates in a competitive labor market and in a non-competitive output market, then the firm faces

• A)a constant wage rate when hiring more labor and a constant price when selling more of its output.
• B)an increasing wage rate when hiring more labor but a constant price when selling more of its output.
• C)a constant wage rate when hiring more labor but a decreasing price when selling more of its output.
• D)an increasing wage rate when hiring more labor but a decreasing price when selling more of its output good.
• E)a decreasing wage rate when hiring more labor but a decreasing price when selling more of its output good.

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Definitions:

Shock-Avoidance Response

A learned behavior in which an individual or animal acts to avoid or prevent an anticipated painful or unpleasant stimulus.

Unacceptable Thought

A notion or idea that is denied or repressed because it is distressing or socially unacceptable, often discussed in psychoanalytic contexts.

Sense of Control

The belief or perception that one has the power to influence events and outcomes in their life.

Painful Experience

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.