A Firm Hiring Labor in a Perfectly Competitive Labor Market

question 281

Multiple Choice

A firm hiring labor in a perfectly competitive labor market faces a

• A) downsloping labor supply curve and upsloping labor demand curve.
• B) upsloping labor supply curve and downsloping labor demand curve.
• C) upsloping labor supply curve and horizontal labor demand curve.
• D) horizontal competitive wage curve and downsloping labor demand curve.

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Definitions:

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Tractor

A type of heavy vehicle used mainly in farming to pull machinery and trailers and for plowing.

Motorcycle

A two-wheeled vehicle powered by an engine, designed for travel on public roads and often used for recreation or transportation.

Opportunity Cost

Represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.